According to the Fiscal Monitor published today, public debt will reduce to 94.4% this year and 89.8% next year, which compares with projections of a ratio of 95.9% of GDP this year and 93.3% next year included in the State Budget proposal for 2025.
For the coming years, the IMF believes in a path of debt reduction to 86.2% in 2026, 82.8% in 2027, 79.4% in 2028 and 76.2% in 2029.
It is noteworthy that the "projections for the current year are based on the budget approved by the authorities, adjusted to reflect the macroeconomic forecasts of the IMF staff." Later projections “are based on the assumption of unchanged policies”.
This report warns of the increase in global debt, which could exceed 100 trillion dollars this year, with the IMF, in the voice of Vítor Gaspar, director of the Department of Fiscal Affairs, appealing to governments that "the time to act is now".
This is crucial for thw country's future sustainability.
By Diogo F. from Lisbon on 24 Oct 2024, 22:15