IMF Warns of Mounting Fiscal Strains in Major Economies

The International Monetary Fund (IMF) has sounded the alarm on mounting fiscal strains in major economies, warning that high debt levels and rising borrowing costs are putting government finances under pressure. In its World Economic Outlook report, the IMF projected that the net debt of advanced economies will reach 5.2% of GDP this year, the highest level since 2021. The deficits of China and the US will reach or exceed 8% of GDP by 2026. The IMF urged governments to take 'urgent' measures to rebuild their public finances and warned that the global economy's resilience is reaching its limit.