China has played a central role in rising global debt in recent decades, as borrowing outpaced economic growth, and its debt burden has defied the moderating trend, growing to 272% of GDP in 2022 from 265. % in 2021.
These levels are similar to those of the United States, which saw its debt-to-total GDP ratio fall to 274% in 2022 from 284% in 2021, according to the IMF report.
The world has been on a debt “roller coaster” for three years, but debt is likely to rise again in the medium term, and the IMF urged governments to adopt strategies to help reduce debt vulnerabilities, both in public debt as well as in household debt and the debt of non-financial companies.
“The rebound in real GDP growth is fading. Inflation is expected to stabilize at a low level over the medium term,” the IMF said.
“If global debt resumes its upward pace in the future, the debt roller coaster since the pandemic will look like nothing more than a temporary deviation around its long-term upward trend.”