Fiscal Policy under Pressure: High Debt, Rising Risks
you are currently viewing:Fiscal Policy under Pressure: High Debt, Rising RisksApril 15, 2026-Global public debt rose to just under 94 percent of GDP in 2025 and is set to reach 100 percent by 2029- one year earlier than projected in April 2025. This accumulation is driven largely by the world's major economies. Public finances are under strain from mounting spending pressures-on social needs- defense- and strategic autonomy-and rising interest burdens. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies. Downside risks dominate the outlook. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial-intelligence-driven productivity, or renewed trade tensions could significantly weaken growth and destabilize financial markets. Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialize more rapidly or trade tensions ease on a sustained basis. Source: imf.org |
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Some ultra-wealthy nations, including Singapore and Qatar, do not make the top 20 for happiness.
Only a handful of countries appear near the top of both rankings.
February 26, 2026--Transition finance that enables the economy and finance to move towards Net Zero and other sustainability-related goals is a significant opportunity for businesses and investors.
Global climate finance, which supports activities that are already green, reached $1.9 tr in 2023 and is estimated to have exceeded $2 tr in 2024.
February 25, 2026--Global value chains are the backbone of the world economy,even at a time when they are undergoing structural and policy-driven changes in the face of a rapidly changing global environment.
Over the past two decades,international production networks have been tested in various ways - by the COVID-19 pandemic, by intensifying geopolitical frictions,by financial shocks and by accelerating climate challenges.