Because of the customs duties, the IMF warns of the high global debt

The International Monetary Fund warned today, Wednesday, that the comprehensive customs duties imposed by US President Donald on his country’s imports and retaliatory responses from other countries will lead to the deterioration of the future view of global financial conditions.
According to the latest financial monitoring reports issued by the Fund, the new fees will lead to shocks in both supply and demand, ignite economic uncertainty, and raise borrowing costs, while increasing the fluctuations of financial markets and the decline in global economic growth prospects.
As a result, the global public debt is expected to rise by 2.8 percent percentage of GDP during the current year, raising the rate of public debt to more than 95% of GDP to more than 95%.

High global debt

This upward trend is likely to continue, according to the International Monetary Fund, with public debt reaching nearly 100% of GDP by the end of the contract.
According to the fund report, the main economies, including the United States, China, France, Britain, Brazil and South Africa, are expected to contribute strongly to increasing the world public debt.
While high fees can lead to an increase in government revenues in the short term, the demand for imports and local production is heading towards retreat, which reduces public revenues and reduces the economic product.
The fund said in its report that “the fiscal policy is now facing a difficult comparison between the debt reduction and the formation of reserves to face uncertainty and absorbing the pressure of spending, all in light of the weak growth expectations, the high cost of financing and the increasing risk.”
In a report published yesterday, the IMF reduced its expectations for the growth of the global economy during the current year to 2.8% of GDP.