Moreover, the IMF expects this figure to reach around 100 percent of the GDP by 2030.
This outlook indicates potential challenges ahead, as future debt levels could exceed current forecasts, necessitating larger fiscal adjustments to stabilize or reduce debt.
The following three primary factors could worsen the fiscal outlook:
- Large spending pressures: increasing demands on public finances could strain budgets;
- Optimism bias in projections: historically, debt projections may underestimate future borrowing needs;
- Sizable unidentified debt: unaccounted debts can lead to unexpected fiscal burdens.
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