🌍 The world is heading toward a historic debt crisis


📊 Unprecedented scale
Global government debt currently accounts for about 94% of GDP and is expected to reach 102% of GDP by 2031—a level that has only been seen after World War II. Based on current trends, it will surpass 100% in 2029.
🇺🇸🇨🇳 Two engines
The US deficit stays at 7-8% of GDP, and debt is projected to skyrocket to 142% of GDP by 2031. China’s debt during the same period is expected to rise to about 127%, and the two countries together account for half of the increase in global debt.
💰 Interest pressure
In just four years, global interest expenditure has jumped from about 2% of GDP to nearly 3%. Governments are refinancing maturing debt at higher interest rates, and debt-servicing pressure is squeezing already scarce fiscal space.
⚠️ The global economy is becoming increasingly dependent on debt-driven growth. History shows this trend will not last forever.
#全球债务 # Economic crisis #IMF # Macroeconomics
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