IMF Warns US and China Debts Threaten Global Finances: Report

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

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

He said 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 debt burdens on countries that borrowed in American currency. .”

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

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

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

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