International Monetary Fund (IMF) has warned that global public debt-to-gross domestic product (GDP) could reach 117 percent of GDP by 2027, the highest level since World War II.
Gatekeepers News reports that in its latest Fiscal Monitor report, the IMF cited major policy shifts, including tariff announcements by the United States and countermeasures by other countries, as factors increasing financial market volatility and debt levels.
The report projects global public debt to increase by 2.8 percentage points this year, pushing debt levels above 95 percent of GDP.
“Debt risks were already elevated,” the report reads. “In a severely adverse scenario, global public debt could reach 117 percent of GDP by 2027, exceeding reference projections by almost 20 percentage points.”
The IMF advised countries to prioritize reducing public debt and building buffers to address spending pressures and economic shocks.
“Countries will need to first and foremost put their own fiscal house in order,” the fund said.
“This means implementing prudent policies within robust fiscal frameworks to build public confidence and help reduce uncertainty.”
However, the IMF held a positive outlook for Nigeria’s debt-to-GDP ratio, projecting a decrease from 52 percent in 2025 to 51.6 percent in 2026, and 49 percent in 2027.
