Context:

• The International Monetary Fund (IMF) released its Fiscal Monitor Report in April 2025, raising concerns about rising global public debt.

Key Highlights of the Report:

• Global public debt in 2025 may surpass the 98.9% of GDP level recorded during the COVID-19 pandemic in 2020.
• It is projected that in 2025, global public debt will rise by 2.8 percentage points, reaching 95.1% of GDP.
• The IMF has warned that if corrective actions are not taken, global debt could reach 117% by 2027 and around 100% (99.6%) by 2030.

Sudan becomes the world’s most indebted country:

• According to the IMF’s 2025 report, Sudan has surpassed Japan to become the most indebted country in the world, with a debt-to-GDP ratio of 252%.

• • This is primarily due to ongoing internal conflict and severe economic instability in the country.

• Japan’s debt-to-GDP ratio is 234.9%, largely driven by its ageing population and chronic fiscal deficits.
• Other developed nations like the United States (122.5%), France (116.3%), and Canada (112.5%) are also facing high public debt, mainly due to increasing expenditure on social welfare schemes and defense.

Top 10 Countries with Highest Public Debt in 2025:

International Monetary Fund (IMF): Basic Information

• A global financial institution that provides policy advice and financial assistance to member countries to promote economic stability and growth.
• Known for supporting countries during financial crises.
• Established: 1944 at the Bretton Woods Conference.
• Headquarters: Washington D.C., United States.