IMF warns economic resilience may falter as public debt rises
The global economy has proved more resilient than expected despite high oil prices and geopolitical turmoil, with growth supported by strong investment in artificial intelligence and stock markets avoiding a crash. The IMF warns that this resilience has come at a cost and may not last, as governments have spent heavily to shield households from energy prices.
Energy support measures have cost about 0.5% of global GDP, and the IMF is urging governments to keep them temporary and targeted. It also forecasts advanced-economy budget deficits at their highest level since the Covid pandemic, with public debt rising from 108% of GDP last year to 115% in five years; bond yields have also climbed to levels not seen in decades.
- The global economy has weathered recent shocks better than feared.
- Energy subsidies have cost about 0.5% of global GDP.
- Rising public debt leaves governments with less room for future crises.
Business Economy Government Politics
Read the full article at the source →
Originally published by The Guardian as “‘Countries are defying gravity at all income levels’: how long can global economy resist chaos?”.