(MENAFN) The International Monetary Fund (IMF) announced on Wednesday that worldwide public debt is projected to surpass 100% of the global gross domestic product (GDP) by the year 2029, reaching levels not seen since 1948.

"This reflects a higher and steeper path than projected before the (coronavirus) pandemic. In addition, the distribution of risks is wide and tilted toward debt accumulating even faster," the IMF stated in its October Fiscal Monitor report.

Moreover, the IMF highlighted that there is a 5% probability that public debt could climb as high as 123% of GDP by 2029.

For many of the world’s leading economies, the IMF observed that public debt already exceeds 100% of GDP or is expected to cross this threshold soon.

Although the number of nations with public debt above 100% of GDP is anticipated to gradually decline over the next five years, those countries are forecasted to represent a growing proportion of global GDP.

Among the G20 countries where public debt is above 100% of GDP are Canada, China, France, Italy, Japan, the UK, and the US.

"These countries typically have deep and liquid sovereign bond markets and often broad policy choices, resulting in their fiscal risk considered moderate," the IMF explained.

On the other hand, numerous emerging markets and low-income countries encounter more difficult fiscal situations despite having comparatively lower debt levels.

"The number of countries with public debt below 60% of GDP increased to more than 100 in 2021 and is projected to continue to increase, although their GDP share in the world represents less than 30%," the report added.

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