Chennai: Global public debt is expected to exceed $100 trillion or 93 per cent of global GDP in 2024 and is expected to grow to 100 per cent of GDP by the end of the decade by 2030. After declining in 2021-22, global public debt rose again in 2023 and is projected to touch 100 percent of GDP by 2030, with the world's two largest economies, China and the United States, primarily driving the growth. Are promoting.
Although debt is projected to stabilize or decline in about two-thirds of countries, it will remain well above pre-pandemic levels. For advanced economies as a group, debt at risk three years ahead has declined somewhat from the peak of the pandemic and is estimated at 134 percent of GDP, while for emerging market and developing economies the risk The debt has increased to 88 percent of the GDP. India's public debt currently stands at 81.59 percent of GDP and for emerging markets and developing economies it is 69.4 percent.
Governments are under increasing spending pressure to address green transition, population ageing, security concerns and long-term development challenges. Fiscal adjustment plays an important role in controlling credit risks. With inflation softening and policy rates being cut by central banks, economies are now better placed to absorb the economic effects of fiscal tightening. To ensure a high probability of debt stabilization for the average economy, a cumulative tightening of about 3.8 per cent of GDP would be required over the same period.
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