Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
The International Monetary Fund (IMF) has projected that the world’s total public debt will exceed $100 trillion for the first time in 2024, driven by increased government spending and slower economic growth. This alarming trend highlights the need for urgent fiscal policy changes as debt levels soar.
Key Findings from the IMF Fiscal Monitor
According to the IMF's latest Fiscal Monitor report, global public debt is expected to reach 93% of global GDP by the end of 2024, approaching 100% by 2030—a significant increase from 89% in 2019. The report warns that current debt projections may underestimate future outcomes due to political pressures favoring higher spending, particularly in the U.S., the world's largest economy.
Political Landscape and Campaign Promises
As the U.S. presidential election approaches, candidates from both parties are proposing new tax cuts and spending initiatives. Republican candidate Donald Trump's plans could add approximately $7.5 trillion to the national debt over ten years, while Kamala Harris, the Democratic nominee, may add about $3.5 trillion. These promises could exacerbate already rising debt levels.
The Need for Fiscal Consolidation
The IMF emphasizes the importance of fiscal consolidation during this period of solid growth and low unemployment. Current efforts, averaging 1% of GDP over the next six years, are inadequate to stabilize debt levels. The report suggests that a cumulative tightening of 3.8% is essential to achieve fiscal sustainability.
Conclusion
With projections indicating a potential rise to 115% of global GDP in a severely adverse scenario, countries like the U.S., China, and several others face significant fiscal challenges. To mitigate these risks, the IMF urges countries to implement credible fiscal plans to enhance resilience against future economic shocks.
