Against the backdrop of escalating debt and rising interest rates, the global macroeconomy may be hovering on the edge of a precipice. With elections looming in over 40 countries and regions in 2024—including the U.S., the EU, India, Russia, Mexico, Pakistan, South Africa, and Venezuela—a profound shift in the global policy agenda may be on the horizon. Such a change could generate a cascade of mini boom-bust cycles in global capital flows, with a substantial impact on both international and domestic debt markets.
Of particular concern are persistently high fiscal deficits that look set to remain well above pre-pandemic levels—and the steeper borrowing costs that exacerbate government and corporate debt burdens. Entrenched structural problems—aging populations, rising healthcare expenditures, and the need to source funding to address growing climate vulnerabilities—will continue to weigh on government balance sheets. Amid growing geopolitical strains, politicization of many of these issues in an election year will mean greater global policy uncertainty—raising the specter of further geoeconomic fragmentation and clouding prospects for multilateral solutions.
Against this challenging geopolitical and macroeconomic backdrop, this interactive debt roundtable convened market and policy experts to discuss the pivotal issues shaping the future of global debt and credit markets, including the G20-IMF-World Bank convened Global Sovereign Debt Roundtable, which aims to expedite effective and timely debt workouts.
If you have any questions, please contact Helene Hatfield ([email protected]).