IMF: era of ambiguity will increase Europe's debt burden

The European economy may face an increase in debt pressure, warns the International Monetary Fund (IMF).

According to the organization's forecast, by 2025 global public debt in the region will reach 95% of GDP and may hit 100% by 2030. The biggest risks in the eurozone are associated with France and Germany.

The fund estimates that by 2030 France’s budget deficit will reach 6.1% of GDP with a public debt of 128.4%. Germany is also moving away from the balanced budget policy. The state deficit is forecast to exceed 4% of GDP against the background of increased spending on infrastructure and defense.

According to the IMF expectations, global uncertainty, amplified by trade risks and geopolitics, worsens the fiscal outlook, especially for emerging economies. In a negative scenario, global debt could exceed 117% of GDP as early as 2027.

Amid the overall deterioration, only the UK demonstrates progress —its budget deficit, according to the report, may decline to 2.3% by 2030.