The Director-General of the International Monetary Fund said on Thursday that the global economy will grow weakly in the coming years, while public debt will rise. Before the joint fall session between
Kristalina Georgieva put it this way: “Forecasts point to a dangerous combination of weak growth and high debt, which points to a difficult future.”
The International Monetary Fund will present its new global economic forecasts early next week. According to previous July forecasts, the global economy will grow by 3.2 percent this year and 3.3 percent next year.
International Monetary Fund experts presented their study at the beginning of the week, according to which global public debt will exceed one hundred thousand billion dollars by the end of 2024, which is equivalent to 93 percent of the global gross domestic product. According to the document's authors, this percentage may rise to 100% of GDP by 2030.
According to the International Monetary Fund, the increase in the global debt stock is largely due to the increase in government loans obtained by the world's two largest economies, China and the United States. However, according to Kristalina Georgieva, the “most terrifying trend” is the growth of public debt in developing and poor countries, where an increasing share of government revenues is spent on debt servicing.
In his statement, the head of the International Monetary Fund called on world governments to take measures to reduce the level of public debt.
At the same time, Kristalina Georgieva drew attention to the slowdown in inflation in the world's leading economies, although she added that it was still too early to declare victory over inflation. “Inflation may slow, but high prices will not go away for the time being,” he warned.
