WASHINGTON, April 15, 2026 (WAFA) - The International Monetary Fund (IMF) said that global public debt is on track to breach 100 percent of GDP in 2029, a level not seen since the aftermath of World War II.

Rodrigo Valdés, the newly appointed Director of the IMF’s Fiscal Affairs Department, said during a press briefing in Washington on the sidelines of the third day of the Spring Meetings of the IMF and World Bank, that total global public debt rose to about 94 percent of global GDP in 2025. This would mean that total debt owed by the world’s governments would equal the value of all goods and services produced globally within one year, raising concerns about countries’ ability to service their debt without constraining economic growth.

Valdés added that the war in Iran constitutes a new source of fiscal pressure on a global landscape already under strain.

He added that the conflict has a tangible global impact, disrupting energy supplies and tightening financial conditions. He further noted that this forces governments into a difficult policy trade-off between shielding populations from rising prices and safeguarding fiscal space, referring to fiscal balances as the capacity to finance spending while maintaining financial stability.

He stressed that the war in Iran is contributing to negative fiscal outcomes, higher commodity prices, rising global interest rates and a stronger US dollar, as well as energy price spikes, thereby exacerbating macroeconomic pressures in emerging market and developing economies.

He called for the gradual elimination of government fuel subsidies, which drain public finances, and for countries to broaden their tax bases as key elements of medium-term fiscal plans.

He added that, although the global economy has shown resilience, the fiscal position has deteriorated.

Global markets are experiencing significant volatility amid the ongoing Israeli–American war on Iran, with the conflict contributing to higher oil prices and elevated inflation levels.

T.R.