The International Monetary Fund (IMF) is about to release its 2024 economic forecast, focusing on the growing global debt problem and its effects on both developed and developing countries around the world.
The IMF predicts that global debt will exceed $100 trillion by 2024, which is 93 percent of the world’s total economic output (GDP). This concern is due to governments and companies borrowing money at low interest rates to boost economic growth.
But as central banks are making it more expensive to borrow money by raising interest rates, this is causing problems for emerging markets like Nigeria. The IMF warns that 40 percent of government bonds and 37 percent of corporate bonds worldwide will need to be refinanced by 2026, which will be difficult under current financial conditions.
Countries like Nigeria are struggling with the issue of managing their debts. In 2022, these countries spent $49 billion more on paying back loans than they got in new loans, which slows down their economic growth and investment.
The International Monetary Fund (IMF) says it’s very important for these countries to make a strong plan for managing their debts, including making changes and cutting some spending, to avoid more serious financial problems.
