IMF Says Global Debt Nears 100% of GDP

The International Monetary Fund (IMF) expects global economic growth of approximately 3% in 2026, but warns that risks remain high. An IMF official told a press conference in Washington that the energy shock caused by the war is not yet over, with oil and gas prices remaining elevated. The Fund is due to release its new forecast in October.

The IMF also warned that global public debt is approaching 100% of GDP and is at its highest level since World War II.

IMF spokeswoman Julie Kozack called on central banks to adhere to their mandates and maintain price stability.

According to the IMF, policymakers must not ease up in the fight against inflation despite risks to economic growth. Key threats include geopolitical tensions, commodity price volatility and high debt levels. The Fund therefore recommends a cautious approach to monetary policy and close monitoring of inflationary pressures.

The IMF continues to monitor developments and will provide updated estimates in the fall, including a reassessment of the risks.

(Reuters, mja)