Fiscal Monitor, April 2025: Fiscal Policy under Uncertainty
Rising uncertainty and policy shifts are worsening fiscal risks. With global debt up, nations must adopt gradual, credible reforms—like subsidy and pension changes—to cut vulnerabilities. Public support is key, needing strong safety nets and clear communication.
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Volume/Issue:
Volume 2025
Issue 001
Publication date: April 2025
ISBN: 9798229002516
$50.00
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Topics covered in this book
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Public Debt , Uncertainty , Interest Rates , Gradual Fiscal Adjustment , Long-Term Economic Growth , Social Security and Pensions , Energy Subsidies , Public Sentiment
Summary
Escalating uncertainty and policy shifts are reshaping the fiscal outlook. Global public debt projections have been revised upwards, while tariffs, uncertainty and market volatility, increased defense spending, and challenging foreign aid are intensifying risks. Countries must implement gradual fiscal adjustments within credible medium-term frameworks to reduce debt and build buffers against heightened uncertainty. Reforms to major expenditure programs, such as energy subsidies and pensions, are crucial to reducing fiscal vulnerabilities while fostering growth. Stakeholder acceptance is critical for advancing such reforms. Shoring up public support requires strategic design, effective communication, robust safety nets, and trust in governance.
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