14.10.2026, 13:05
The IMF estimated the primary budget deficits of the largest countries in the world
Source: OREANDA-NEWS
OREANDA-NEWS The primary budget deficits of the world's largest countries in 2020-2025 significantly exceeded previous levels, according to the report of the International Monetary Fund (IMF).
"In a broader sense, the resilience of the global economy to the large-scale shocks of the past few years was largely due to the use of available budgetary opportunities. Historical experience since the end of the 19th century shows that after major shocks, the level of global public debt tends to rise," the document says.
In accordance with this pattern, in 2020-2025, primary budget deficits in the largest advanced economies and emerging markets on average remained significantly above the pre-crisis level, IMF analysts say.
In most of these countries, with the exception of India, a more extensive fiscal consolidation would be required to stabilize the public debt-to-GDP ratio than is currently provided for by the current economic policy, they add.
At the same time, it is becoming increasingly difficult for governments to refinance public debt: real long-term loan rates are rising, and debt repayment periods are decreasing, which further increases exposure to refinancing risks and fluctuations in short-term loan rates, especially with rising costs, including defense, the authors of the report state.
"In a broader sense, the resilience of the global economy to the large-scale shocks of the past few years was largely due to the use of available budgetary opportunities. Historical experience since the end of the 19th century shows that after major shocks, the level of global public debt tends to rise," the document says.
In accordance with this pattern, in 2020-2025, primary budget deficits in the largest advanced economies and emerging markets on average remained significantly above the pre-crisis level, IMF analysts say.
In most of these countries, with the exception of India, a more extensive fiscal consolidation would be required to stabilize the public debt-to-GDP ratio than is currently provided for by the current economic policy, they add.
At the same time, it is becoming increasingly difficult for governments to refinance public debt: real long-term loan rates are rising, and debt repayment periods are decreasing, which further increases exposure to refinancing risks and fluctuations in short-term loan rates, especially with rising costs, including defense, the authors of the report state.
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