Why our world needs fiscal restraint in biggest-ever election year

The global economic outlook has improved, with inflation decreasing and financial conditions easing.

However, many countries still struggle with high public debt and fiscal deficits.

The IMF has urged governments to rebuild buffers and ensure fiscal sustainability.

Global public debt has increased to 93% of GDP, led by the US and China. Moderate fiscal tightening is expected, but uncertainty remains.

With a record number of elections in 2024, governments must exercise restraint to maintain sound public finances.

The IMF recommended phasing out crisis-era policies, containing spending, and enhancing revenue to ensure sustainable public finances.

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