Global finance leaders are set to gather in Washington this week amid growing concerns over rising public debt levels. The International Monetary Fund (IMF) has already called on countries to tighten their fiscal policies as debt is expected to hit $100 trillion this year, largely driven by the United States and China.

Ahead of the meetings, the IMF released a Fiscal Monitor report warning that public debt is becoming an increasingly urgent issue. Managing Director Kristalina Georgieva emphasized in a recent speech that the combination of low economic growth and high debt is creating a challenging global economic environment.

“Our forecasts point to an unforgiving combination of low growth and high debt — a difficult future,” said Georgieva. “Governments must work to reduce debt and rebuild buffers for the next shock — which will surely come, and maybe sooner than we expect.”

The IMF’s concern extends to major global economies, highlighting that debt levels in countries like China and the United States could trigger higher borrowing costs and increased risks for other economies. The impact of their fiscal policies is felt worldwide, making global public finances a shared concern.

Finance ministers, including UK Chancellor Rachel Reeves, are facing additional pressure to stabilize debt. For the UK, public finance data due for release on Tuesday will be closely watched, just ahead of the country’s upcoming budget on October 30.

Meanwhile, France is also in the spotlight, with Moody's Ratings expected to issue a report this Friday that could affect the country’s financial outlook. Investors are particularly attentive, as any changes in France's rating could have ripple effects across Europe.

As the week progresses, economists are also looking at potential monetary policy moves, with expectations of a rate cut in Canada and a rate hike in Russia. In the United States, housing market reports due midweek will shed light on the state of the real estate market, as lower mortgage rates are expected to bring some stability to home sales.

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