IMF Warns of Debt Risks

18-avg, 2025

The IMF has warned that elevated public debt levels combined with higher interest rates are increasing fiscal vulnerabilities, particularly for emerging markets and highly leveraged economies.

The IMF’s debt warning underscores rising fiscal vulnerability as governments face higher interest costs amid slowing growth. Elevated debt limits policy flexibility and increases default risk, especially in emerging markets.

For global investors, this raises concerns over sovereign creditworthiness and currency stability. The larger picture reveals a post-pandemic world grappling with structurally higher debt, where fiscal sustainability becomes a central determinant of economic resilience and geopolitical influence.