The likelihood that Italy will achieve the primary deficit needed to stabilize its debt level is less than 50 percent, the IMF said. It added that in 2023 "several economies (Italy, Japan) announced new fiscal stimulus plans, including costly changes to tax policy, social security contribution cuts, and new spending initiatives, often based onoptimistic financing assumptions," according to the IMF's latest FiscalMonitor report.
"Global debt is projected to increase to close to 100 percent of GDP by 2029," the report said. The increase will be led by some large economies (for example, China, Italy, the United Kingdom, and the United States), which critically need to take policy action, it said.