The International Monetary Fund (IMF) has projected that global public debt will exceed 100 percent of Gross Domestic Product (GDP) by 2029 — its highest level in more than seven decades.
Vitor Gaspar, Director of the IMF’s Fiscal Affairs Department, disclosed this on Tuesday while presenting the Fund’s latest Fiscal Monitor at the ongoing IMF/World Bank Annual Meetings in Washington, D.C.
“In the Fiscal Monitor, we project global public debt to go above 100 percent of GDP by 2029,” Gaspar said. “Public debt risks are widespread and tilted toward faster accumulation. Policymakers must act now to keep debt under control and contain debt risks.”
He explained that while the period between the global financial crisis and the COVID-19 pandemic benefited from low interest rates that made debt easier to sustain, the global economic environment has shifted.
“The situation is now starkly different. Interest rates have increased considerably in global markets, and their path forward is highly uncertain,” Gaspar said. “The greatest concern is financial turmoil driven by fiscal-financial feedback loops.”
Gaspar urged governments to implement fiscal reforms that ensure debt sustainability, create buffers against future shocks, and strengthen trust in governance.
Meanwhile, Davide Furceri, Deputy Division Chief of the IMF’s Development Macroeconomic Division, advised Nigeria to intensify tax reforms to boost revenue through improved tax administration.
He noted that Nigeria has made progress by streamlining its tax code, reducing tax expenditures, and easing the burden on businesses and low-income earners.
Furceri added that improving public spending efficiency and increasing social investments in areas such as education, healthcare, and infrastructure could help strengthen Nigeria’s long-term growth and resilience.
