Could soaring global debt trigger the next financial crisis?

"The IMF says global public debt could exceed 100% of GDP by the end of the decade. That's almost double what they owed just a decade ago. The International Monetary Fund warns that by 2029, global debt will surpass 100 percent of the world's gross domestic product, meaning the world's borrowing could soon exceed the size of the entire global economy."

"But there is a stark contrast: Richer nations can for now still borrow at lower costs and keep spending while many poorer nations are running out of room to take on more debt. When borrowing becomes too big who pays the price?"

Global public debt now totals nearly $100 trillion, almost double the level a decade ago. By 2029, global public debt could exceed 100% of world GDP, meaning borrowing could surpass the size of the global economy. Wealthier countries currently face lower borrowing costs and retain fiscal space to continue spending. Many poorer nations have limited capacity to take on more debt and are running out of fiscal room. The divergence in borrowing capacity increases risks of debt distress, potential defaults, and uneven distribution of the economic burden when borrowing becomes unsustainable.

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