Luxtoday

Luxembourg's public debt will rise to a record 30% by 2029

Last time updated
06.11.24
 Kaja Sariwating, Unsplash

Kaja Sariwating, Unsplash

The International Monetary Fund (IMF) released its annual monitoring of the world's budgets on 5 November. This year, the fund urges governments to set limits on public debt. 

However, this call applies less to Luxembourg and much more to the US and China. It is they who have become the drivers of the growth of the global sovereign debt over the past years;

image1.jpg
IMF report

IMF economists note that, overall, the global economy in 2024 has almost returned to pre-pandemic levels and inflation has stabilised. However, fiscal deficits are still high and global public debt continues to grow and could exceed $100 trillion by the end of 2024. If this continues, the global debt-to-GDP ratio will approach 100 per cent by the end of the decade, surpassing the peak of the pandemic, experts warn.

image2.jpg
Luxembourg's public debt growth on the IMF graph

Countries where government debt is expected to grow faster than in the pre-pandemic period include not only China and the US, but also Brazil, France, Italy, South Africa and the UK. Luxembourg, on the other hand, shows moderation and foresight with its 26-30 per cent. It is worth noting that this year Luxembourg has once again been included in the list of advanced economies, along with 40 other countries that demonstrate a high per capita income, a diverse export base and a strong financial sector;

Send feedback
Last time updated
06.11.24

Source: IMF

We took photos from these sources: Kaja Sariwating on Unsplash

Authors: Aleksandr