First modification:
The most recent estimates from the International Monetary Fund show that the pressures from the world’s two main economies will drive an increase in global debt. The United States would accumulate numbers greater than 120% this year, while China would reach triple digits in 2027. In Latin America the panorama is similar, with the region’s powers contributing the largest debt numbers.
With the arrival of 2030, global debt would exceed 100% of world GDP, according to estimates by the International Monetary Fund (IMF), the entity reported from the Moroccan capital, in its annual meeting with the World Bank (WB).
“Global debt is expected to increase by one percentage point of GDP each year in the medium term. Adding that at the projected rate, global debt will reach 100% of GDP by the end of the decade.”
For the international lender, the increase is due to the slowdown in the growth of economies around the world, rising interest rates and constantly growing fiscal deficits.
But to this panorama is also added the pressure from the world’s main economies, with the United States and China at the helm.
In the new forecasts, the US superpower’s debt would climb to 123.3% of its GDP this year and is then expected to continue rising to 137% in 2028.
China, the second largest economy, is also a major contributor to the global red ink. Its debt is expected to reach 83% of GDP in 2023 and continue to grow until it exceeds 100% in 2027.
The panorama in Latin America
For the region, the IMF expects a jump from 3.4% to 4.6% of GDP this year in the regional budget deficit.
On the public debt side, it is expected to remain relatively stable at 68.5% of GDP with Argentina and Brazil rising compared to last year, and with Mexico, which is already in a healthier position than its regional neighbors, lowering it.
![IMF forecasts for Latin America](https://s.france24.com/media/display/a59c2dbe-68a6-11ee-9203-005056bfb2b6/WEB%20ECO%2011OCT%20PROYECCION%20DEUDA%20PUBLICA%202023_01078.png)
The greater the deficit, which is generated when expenses are higher than income, there will be more debt for each country, which in turn means that each nation dedicates a greater proportion of its income to covering these obligations, sacrificing social investment. or having to raise your taxes.
With AP and EFE
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