IMF chief Dominique Strauss-Kahn said on Saturday that public debt in the advanced economies is set to increase significantly and reversing the rise would be a tremendous challenge.
Speaking at a conference, Strauss-Kahn also said the global economic recovery is still sluggish and uneven and needs continued policy support in many advanced economies.
He said public debt in the advanced economies is forecast to rise by about 35 percentage points on average, to about 110 percent of gross domestic product in 2014.
Reversing this increase will be a tremendous challenge -- let alone reducing debt below pre-crisis levels, which may be needed to leave enough fiscal space to tackle future crises.
Strauss-Kahn said the global economy now appeared to be on the path to recovery.
Though it remains sluggish and uneven, and in need of continued policy support in many advanced economies. Moreover, the costs of the crisis -- low growth, high unemployment, and sharply higher public debt -- will take many years to overcome, he said.
(Reporting by Natsuko Waki; Editing by Susan Fenton)