INSUBCONTINENT EXCLUSIVE:
The IMF reports that global debt dropped for the second year in 2022, yet, it remains higher than before the pandemic.In 2022, this debt
The debt total reached US$235 trillion in the same year.Many governments increased their spending
They aimed to boost growth and tackle rising food and energy costs.Despite this, the overall debt load still surpasses pre-pandemic
figures.Global Debt Still High, Says IMF
(Photo Internet reproduction)IMF economists are urging quick action
They call for reducing risks tied to high debt levels
A strong commitment to managing debt is key for the future, they say.The United States leads in debt with US$70 trillion owed
China follows with US$47.5 trillion
Both countries have similar debt as a share of their GDP.The report adds that China has boosted global debt quickly in recent years
On the other hand, debt in developing countries also went up, but from a lower base.BackgroundThe IMF has been monitoring global debt for
Before 2008, global debt was relatively manageable.The financial crisis that year changed that
Governments had to spend more to save their economies.Rising global debt is not just a Western issue
Emerging markets are also borrowing more.This could make them vulnerable to economic shocks
They have been urging debt control for several years
This is particularly important for countries that rely heavily on exports.A sudden drop in demand can make debt levels unsustainable quickly
These insights aim to prompt quicker actions by policymakers.
