U.S. Borrowing Expected to Rival Europe’s Most Indebted States: IMF

The United States is on track to record the steepest debt increase among major economies, according to the International Monetary Fund (IMF) — surpassing levels in Italy and Greece for the first time this century, Una Hajdari reported for Euronews.

For the first time this century, the U.S. is expected to surpass Italy and Greece — long regarded as the developed world’s most indebted states.

Global public debt is rising faster than at any point in modern history, and this time, it is not just the traditionally large spenders driving it.

The IMF’s latest Fiscal Monitor warns that the public finances of major powers — led by the U.S. — have become a systemic global risk.

“Although the number of countries with debt above 100% will be steadily declining in the next five years, their share in world GDP is projected to rise,” the report stated. This means that “global public debt is projected to rise above 100% of world GDP by 2029,” it said.

In such a scenario, public debt would reach its highest level since 1948.

According to IMF calculations, this trajectory “reflects a higher and steeper path than projected before the pandemic,” signaling that governments have failed to stabilize their debt despite the recovery of global growth.

The U.S. will see the steepest increase among major advanced economies in its debt-to-GDP ratio, the IMF said. From 2023 to 2030, general government gross debt is projected to climb from 119.8% of GDP in 2023 to 143.4% in 2030.

For the first time this century, the U.S. is expected to surpass Italy and Greece — long regarded as the developed world’s most indebted states. Italy’s debt remains among the world’s highest at about 137% of GDP, but the IMF expects it to stay flat through 2030.

Greece, currently at 146.7%, is forecast to decline to 130.2%. For comparison, France’s debt stands at 116.5% of GDP, Spain’s at 100.4%, and Germany’s at 64.4%.