Global Debt and Budget Deficits Are Rising, According to International Monetary Fund Report
According to the IMF report, while global growth continues, rising public debt and budget deficits pose risks. The report announced Turkey's 2026 growth forecast as 2.7 percent and inflation expectation as 31.2 percent.
The International Monetary Fund's World Economic Outlook report revealed that public finance is under risk due to rising debts and budget deficits while growth continues in the global economy.
Global Borrowing and Budget Deficits
The International Monetary Fund's World Economic Outlook report shows that governments are squeezed between rising expenditures, high borrowing costs, and weakening budget balances. The net borrowing of advanced economies is expected to reach 5.2 percent of gross domestic product this year.
Bond Yields and Cost Risk
The deterioration in budget balances makes the rollover of public debt more costly. Central banks delaying interest rate cuts or turning to interest rate hikes drive up governments' borrowing costs.
Growth Forecasts in the World Economy
The IMF expects the global economy to grow by 3.1 percent this year and 3.4 percent in 2027. While the US economy's growth forecast for this year is 2.3 percent, China's growth expectation was revised down to 4.5 percent.
Inflation and Trade Volume Expectations
Global headline inflation is projected to rise to 4.7 percent in 2026 under the impact of increases in energy and food prices, and to decline to 4.1 percent in 2027. The rise in energy costs keeps price pressures alive.
Turkey's Growth and Inflation Outlook
The IMF expects the Turkish economy to grow by 2.7 percent in 2026 and 3.6 percent in 2027. Year-end inflation in Turkey is projected to be 31.2 percent in 2026 and 26.5 percent in 2027.