IMF warns of rising global debt risks
The International Monetary Fund (IMF) warned that rising bond yields and borrowing costs are intensifying pressure on public finances.
According to its assessment of the Fiscal Monitor report, the average yield on 10-year government bonds across G7 countries increased by more than one percentage point between February and September, reaching its highest level in approximately 20 years. The IMF projects that global public debt could exceed 100% of global GDP by 2030.
The IMF expects governments' average borrowing costs to rise from 2.3% in 2021 to 3.7% by 2031. Higher interest payments could reduce the resources available for public investment and social spending, while elevated energy prices, inflation, and growing government debt continue to push bond yields higher. The institution urged governments to implement credible medium-term fiscal policies to ensure debt sustainability and limit financial risks.
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