Beautiful Virgin Islands

Wednesday, Aug 27, 2025

Global governments debt has risen to 98% of economic output, a level last seen after World War II, IMF Says

Global governments debt has risen to 98% of economic output, a level last seen after World War II, IMF Says

Government debt around the world shot up last year to approach levels last seen in the aftermath of World War II, the International Monetary Fund said Thursday.
Public debt as a share of global gross domestic product surged to 98% by the end of December from 84% at the end of 2019, before the pandemic struck, the IMF said in an update to its semiannual Fiscal Monitor report. The IMF is the global lender of last resort to countries in distress and tracks debt levels closely. The total dollar value of global debt, which includes central and state government debt, came to $89.6 trillion at year’s end.

The increase was particularly large among advanced economies, which can easily borrow at low interest rates. The debt-to-GDP ratio among those nations rose to 123% by December from 105% in 2019, and it is expected to grow to 125% this year.

“From 2021 onwards, debt stabilizes at a high level and stays elevated well above the pre-Covid-19 level up to the end of” 2021, said Vitor Gaspar, director of the IMF’s Fiscal Affairs Department.

The IMF said governments should emphasize measures to combat the pandemic and cautioned against prematurely dialing back on spending.

“The virus won’t be under control anywhere until it is under control everywhere,” Mr. Gaspar said. “The sooner that happens, the sooner economic activity will pick up and the sooner jobs will come back. That is the high road to growth and fiscal sustainability.”

In the U.S., the debt-to-GDP ratio hit an estimated 129% in 2020 and is projected to rise to 133% this year, up from 108% in 2019, the IMF said. The projection takes into account two major pandemic-related stimulus bills adopted in 2020—the $2.2 trillion Cares Act in March and the $900 billion package in December.

The IMF defines public-sector debt to include debt held by central banks. The U.S. tracks debt held by the public, which came to about 100% of GDP at the end of September 2020.

President Biden’s $1.9 trillion stimulus plan, if enacted as proposed, would boost the U.S. economy by roughly 5% over three years, IMF chief economist Gita Gopinath said earlier. The IMF projects the U.S. economy will grow by 5.1% this year after shrinking an estimated 3.4% in 2020.

“The U.S. has a very large capacity to act. That is not something widely shared across the world,” Mr. Gaspar said.

While wealthy nations will continue to spend aggressively this year, emerging-market countries, facing higher borrowing costs, will start cutting back, the IMF projects. Among the poorest nations, spending was flat in 2020, as governments increased outlays on health care but cut back in other areas.

Bolstering governments’ ability to spend, particularly in advanced economics, are historically low interest rates and inflation in recent years, which have kept borrowing costs low. Since the 1990s, the amount of public debt in advanced economies has more than doubled relative to GDP. At the same time, interest costs have declined by half, Mr. Gaspar said.


Still, IMF economists called on governments to stay vigilant about their fiscal health and be wary of the risk that heavy deficit spending could set off runaway inflation. A study by IMF economist Paolo Mauro showed that when interest rates start rising, they go up fast and do so late before a run-up to a fiscal crisis.

Once the virus is brought under control, IMF economists say, governments should focus their spending on moving their economies to a “smart, green inclusive and resilient model of growth,” Mr. Gaspar said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×