📈 Sri Lankan Economist Highlights Rising Global Debt Risks

Sri Lankan economist Talal Rafi delivered a keynote address at the 20th AGBRP Annual Conference in Slovakia on January 7, warning of systemic instability caused by record-breaking global sovereign debt levels. • Global Debt Landscape (2024) Total Public Debt: Reached a record US$ 102 Tn, reflecting a US$ 5 Tn increase within a single year. Interest Burden: Developing nations are expanding debt at twice the pace of advanced economies. Fiscal Impact: A record 61 nations now spend over 10% of revenue on interest payments alone. • Macroeconomic Consequences Total Interest Payments: Hit a record US$ 921 Bn in 2024. Human Cost: Approximately 3.4 Bn people live in countries where debt servicing exceeds national spending on health or education. Core Drivers: Identified as persistent fiscal deficits, high borrowing costs, and populist policies. • Strategic Recommendations IMF Role: Rafi emphasized the necessity of a better-funded International Monetary Fund (IMF) as the "lender of last resort" to manage escalating global fragility. Growth Constraints: High debt levels are actively destabilizing macroeconomic fundamentals and constraining long-term global growth. _Source: Based on keynote address at the AGBRP Annual Conference, Slovakia._