The IMF predicts that global public debt levels will continue to rise in 2025

On April 23 local time, the International Monetary Fund (IMF) pointed out in its latest "Fiscal Monitor" report that against the backdrop of increasing global economic uncertainty, public debt levels continue to rise, and countries need to take swift action to rectify their finances in order to maintain economic stability and sustainable growth.

The report states that a series of tariff measures recently announced by the United States and retaliatory actions by other countries have heightened volatility in financial markets, weakened global growth prospects, and increased risks. Amid rising debt levels and already strained fiscal conditions in many countries, newly emerging permanent spending demands, such as defense, have further increased fiscal pressure.

According to forecasts, global public debt is expected to rise by 2.8 percentage points by 2025, reaching over 95% of GDP, and this trend is expected to continue. If policy uncertainty intensifies, debt levels may rise further.

The report warns that under extremely adverse scenarios, global public debt could climb to 117% of GDP by 2027, marking the highest level since World War II, exceeding baseline forecasts by nearly 20 percentage points. Furthermore, if the shocks from tariffs lead to further declines in economic output and fiscal revenue, debt levels could surpass current estimates