Global debt challenges ahead

With higher interest rates increasing the debt-servicing burden of nations, the scope of productive expenditure will shrink further

The global economy has been going through a rough phase, marked by slowing growth and rising uncertainties. According to the International Monetary Fund (IMF), global gross domestic product (GDP) growth is projected to slow from 3.5 per cent in 2022 to 3 per cent in 2023 and further to 2.9 per cent in 2024, falling below the historical average of 3.8 per cent between 2000 and 2019.

While inflation has eased significantly from the peaks seen post-Covid, it remains above the target for many economies. Globally, interest rates have broadly peaked, but they are expected to remain higher for longer in