National News Agency - International Monetary Fund: The debts of the United States and China pose a threat to the global economy

2024-04-17 17:15:11

NNA – The International Monetary Fund warned, in its financial monitoring report, that “the debts of the United States and China pose a threat to global finance,” according to “Russia Today.”

International Monetary Fund officials said, “The world’s two largest economies, China and the United States, will lead most of the increase in global public debt over the next five years, as American spending creates problems for many other countries by keeping interest rates high.”

He pointed out that “high interest rates in the United States make life difficult for many countries by strengthening the value of the dollar against other currencies, making goods priced in dollars more expensive and increasing the debt burdens on countries that have borrowed in the American currency.”

The International Monetary Fund expects that the US public debt this year will exceed the level of 123% of the size of the US gross domestic product, and that it will continue to grow in the coming years to reach the level of 134% in the year 2029.

The Fund indicated that “China’s public debt in 2024 will reach 88.6% of the size of the gross domestic product, and in 2029 it will reach 110% of the size of the Chinese economy.”

China’s public debt will rise from 83.6% recorded in 2023 to 88.6% of GDP in 2024.

The Fund also expected that “global public debt will rise in the current year 2024 to 93.8% of global GDP, after which it will continue to grow to reach 98.8% in 2029.” According to the Fund’s report, “global public debt will rise from 93.2% in 2023 to 93.8% of global GDP in 2024.”

In 2024, the eurozone’s public debt will rise “slightly compared to 2023 and will reach 88.7% of GDP, but it will then begin to decline to reach the level of 87.7% by 2029.”

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