Global Debt Is Heading to 100% of GDP - What Can Governments Do?

Global Debt Is Heading to 100% of GDP - What Can Governments Do?

At the Fiscal Monitor press briefing during the 2026 IMF-World Bank Group Annual Meetings in Bangkok on 14  October, the IMF sounded the alarm: global fiscal risks are rising, even as economic growth stays resilient. 

Many countries' fiscal positions have weakened, and higher interest rates and debt-servicing costs are squeezing government budgets. Global public debt is projected to hit 100% of GDP by the end of the decade.

The IMF's advice for governments:
■ Start consolidating early. Countries with high debt or elevated fiscal risks should begin fiscal consolidation with credible plans tailored to their national circumstances.

■ Fix the revenue side. Make tax systems more efficient and less distortionary, remove unnecessary tax exemptions, and strengthen revenue collection.

■ Spend smarter. Improve spending efficiency and prioritize what supports long-term growth: education, healthcare, and essential public services.

 Let energy prices reflect scarcity. Costly, broad-based subsidies distort markets and create spillover effects across the global economy. Where help is needed, make it targeted and temporary for vulnerable groups.

■ Rebuild fiscal buffers. Prepare for the next shock, whether it's economic volatility, natural disasters, or population aging.

Fiscal discipline isn’t about austerity. It’s about protecting tomorrow’s growth, jobs, and public services.

Source: PR Thai Government