The global national debt is rapidly increasing and is expected to exceed 100% of the world’s gross domestic product for the first time in over seven decades by the end of 2029. This information is included in the October Fiscal Monitor report by the International Monetary Fund. If the trend continues, the figure will reach its highest level since 1948 in just four years, and in the worst-case scenario, it could rise to 124% of GDP by 2029.
This is reported by Business • Media
Global Trends in National Debt Growth
In many leading economies, national debt already exceeds or is projected to exceed 100% of GDP. This group includes countries such as Canada, China, France, Italy, Japan, the United Kingdom, and the United States. These nations are facing the need to revise their budget strategies amid high expenditures and a gradual recovery from the pandemic and other crisis phenomena.
The Situation of National Debt in Ukraine
For Ukraine, the situation also remains challenging. Even before the full-scale war began, the country managed to reduce its national debt to 48.9% of GDP. However, subsequent events led to a significant increase in borrowing. According to IMF estimates, by 2025, Ukraine’s national debt level will reach 108.6% of GDP, and by 2026, it will exceed 110%. After that, a gradual reduction in the debt burden on the economy is expected.
“Global national debt will exceed 100% of global GDP by the end of 2029. In this case, this figure will reach a record level since 1948, the IMF reported in the October Fiscal Monitor. This is a worse scenario than was forecasted before the coronavirus pandemic. In the worst-case scenario, debt will reach 124% in 2029”.