ΙMF Blog,update

 

Dear MARIA, We just published a new Chart of the Week blog—read the full text below. Debt is Higher and Rising Faster in 80 Percent of Global Economy (Credit: fcafotodigital/iStock by Getty Images)  By Era Dabla-Norris and Davide Furceri  Global public debt could increase to 100 percent of global gross domestic product by the end of the decade if current trends continue, according to projections in our latest Fiscal Monitor. The rising ratio of public debt to GDP reflects renewed economic pressures as well as the consequences of pandemic-related fiscal support, according to our report. This trend raises fresh concerns about long-term fiscal sustainability as many countries face rising budget challenges.   The Chart of the Week shows that about a third of countries, accounting for 80 percent of global GDP, have public debt that’s both higher than it was before the pandemic and rising at a faster pace. More than two-thirds of the 175 economies in our study now have heavier public debt burdens than before COVID spread in 2020. Public debt’s evolution over the past five years diverges widely across countries, which means fiscal policy must vary in line with country‑specific factors and circumstances. However, given the uncertain times that may lie ahead amid high trade policy tensions, countries everywhere will need much greater resilience. Specifically, fiscal policy should: Be part of overall stability‑oriented macroeconomic policies. Aim, in most countries, at reducing public debt and rebuilding capacity to spend and respond to new pressures and other economic shocks with a credible medium‑term framework. Lift potential growth to ease policy tradeoffs. Amid uncertainty, fiscal policy must anchor confidence and stability for economies to deliver growth and prosperity. It’s increasingly vital for governments to build trust, tax fairly, and spend wisely. Policymakers should devote their political capital to fostering confidence and trust. Doing so starts with redoubling their efforts to keep their own fiscal houses in order.   —For more, see the Fiscal Affairs Department’s April 23 blog post and press briefing. Read the blog Recent blogs Rising Global Debt Requires Countries to Put their Fiscal House in Order Amid heightened uncertainty, policymakers will need to deal with complex trade-offs between debt, slower growth, and new spending pressures Fostering Core Government Bond Market Resilience Policymakers should broaden central clearing and monitor market-making, including by nonbank financial institutions, while dealers must continue to build resilience AI Needs More Abundant Power Supplies to Keep Driving Economic Growth The power-hungry technology requires policies to help expand electricity supplies, incentivize alternative sources, and help contain price surges Thanks again for your interest in the IMF Blog—and please feel free to share your thoughts. We’d be happy to hear from you.   Jeff Kearns  Managing Editor | IMF Blog  jkearns@IMF.org Stay connected with the International Monetary Fund:       This email was sent to politikimx@gmail.com on behalf of: International Monetary Fund 1900 Pennsylvania Ave NW · Washington, DC · 20431