Three big groupsโthe OECD, the IMF, and the IIFโgave urgent warnings on Wednesday. They are worried about high debt and rising costs in large countries. Global debt has reached a huge $365 trillion (ยฃ275tn). This is a big problem for governments and companies.
The IIF says the world is moving into a future with a lot of debt. Governments and private companies both want to borrow more money to grow. This makes debt a permanent part of the global economy.
Some large nations have big problems. The United States, France, the United Kingdom, and Japan have large deficits. They must pay more money for interest on their debt. This makes it hard for these governments to spend money on other important things.
Kristalina Georgieva is the managing director of the IMF. She said that economic shocks are pushing debt up "like a staircase not to heaven." This means rising debt is dangerous and does not lead to wealth.
The OECD reported that bond yields are very high in six G7 economies. This is the highest level in 15 years or more. High yields mean governments must pay more interest to investors. This is a risk for these countries.
The OECD says global economic growth will reach 2.9% this year. This is a small increase from the 2.8% forecast in June. However, the UK's growth is forecast to reach 1.1% by 2026. Wars in the Middle East and the Russia-Ukraine war also make energy prices rise. Additionally, the El Niรฑo weather system could hurt food production and raise food prices.