Global public debt edged up to 93% of Gross Domestic Product in 2023 and remained 9 percentage points above the pre-pandemic level.
According to the International Monetary Fund Fiscal Monitor, the increase was led by the two largest economies, United States and China, where debt rose by over 2 and 6 percentage points of GDP respectively.
These two economies, it said, also shape global fiscal developments and outlook.
“Slowing growth in China could weigh on global growth and trade, posing fiscal challenges for countries with strong trade and investment linkages. High and volatile government bond yields in the United States would lead to tighter financing conditions in the rest of the world”, it explained.
Moderate fiscal tightening, the Monitor said is expected to resume this year, but significant uncertainty remains.
In 2024, a record number of countries, home to more than half of the world’s population, are holding national elections. History shows governments tend to spend more and tax less during election years.
Deficits in election years tend to exceed forecasts by 0.4 percentage points of GDP, compared to non-election years. The IMF therefore wants governments to exercise fiscal restraint to preserve sound public finances in this great election year.
Global Economic Outlook Improves but.....
Meanwhile, the global economic and financial outlook has improved in the last six months.
Inflation has fallen, financial conditions have eased, and risks to the outlook are balanced. However, many countries continue to struggle with high public debt and fiscal deficits amid new challenges from high real interest rates and dimming medium-term growth prospects.
“Our latest Fiscal Monitor calls for governments to avoid slippages and focus more on rebuilding buffers and safeguarding fiscal sustainability over the medium term”.
Latest Stories
-
Paris 2024: Opening ceremony showcases grandiose celebration of French culture and diversity
2 hours -
How decline of Indian vultures led to 500,000 human deaths
2 hours -
Paris 2024: Ghana rocks ‘fabulous fugu’ at olympics opening ceremony
3 hours -
Trust Hospital faces financial strain with rising debt levels – Auditor-General’s report
3 hours -
Electrochem lease: Allocate portions of land to Songor people – Resident demand
3 hours -
82 widows receive financial aid from Chayil Foundation
4 hours -
The silent struggles: Female journalists grapple with Ghana’s high cost of living
4 hours -
BoG yet to make any payment to Service Ghana Auto Group
4 hours -
‘Crushed Young’: The Multimedia Group, JL Properties surprise accident victim’s family with fully-furnished apartment
4 hours -
Asante Kotoko needs structure that would outlive any administration – Opoku Nti
5 hours -
JoyNews exposé on Customs officials demanding bribes airs on July 29
5 hours -
JoyNews Impact Maker Awardee ships first consignment of honey from Kwahu Afram Plains
6 hours -
Joint committee under fire over report on salt mining lease granted Electrochem
6 hours -
Life Lounge with Edem Knight-Tay: Don’t be beaten the third time
7 hours -
Pro-NPP group launched to help ‘Break the 8’
7 hours