Reserve Bank of India Governor Shaktikanta Das warned of the risks posed by the global debt, which has reached $315 trillion, or 333% of global GDP in 2024, according to Asian News International.
Speaking at the Future of Finance Forum 2024 in Singapore, Das highlighted the increasing vulnerability of emerging market economies and low- to middle-income countries to financial instability. He also noted that rising fiscal deficits, now higher than pre-pandemic levels, limit the potential for fiscal consolidation, especially with 88 countries entering election cycles in 2024.
Das stressed the importance of prudent monetary policy and proactive government measures to manage debt and avoid further financial risks amid ongoing geopolitical tensions and supply chain disruptions.
