IMF Warning: US Government Debt Threatens Global Economy

The US government debt threatens the stability of the economy not only in the US but also globally, according to the International Monetary Fund.

The US national debt currently stands at $37.787 trillion. It is projected to reach 140% of GDP by 2031. The IMF believes that Washington needs a clear fiscal consolidation plan to resolve the situation.

This isn't just a US issue – according to Foreign Policy, the global economy could face an unprecedented currency crisis due to the enormous government debt of seven developed countries, which exceeds 100% of GDP. According to the publication's expert, the situation is reminiscent of the financial crises of the 1990s in Asia and Russia, but on a more significant scale.