IMF chief urges US and wealthy nations to rein in debt to ease global economic pressure
Georgieva said growth alone cannot fix debt as the IMF warns rising borrowing costs are forcing poorer countries into harder spending choices.
- On Wednesday, IMF Managing Director Kristalina Georgieva urged wealthy nations to urgently address mounting global debt, warning that economic growth alone cannot resolve the more than $40 trillion in national debt.
- Rising debt levels and global inflation, worsened by high energy costs from the Iran war, pushed interest rates to multidecade highs, complicating efforts to achieve "fiscal consolidation" following heavy COVID-19 spending.
- Developing nations now pay three times more on interest repayments than wealthy nations, with nearly 10% of government spending going toward debt; the Nino phenomenon further restricts recovery opportunities.
- The UNDP announced a "Jobs for Prosperity" initiative this week, aiming to work with the World Bank and private businesses to encourage investment in tourism, healthcare, and food processing.
- With more than 1.2 billion young people entering the global workforce, forecasts suggest only 400 million new jobs will be created, prompting Alexander De Croo to emphasize creating "investible projects.
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74 Articles
The Director General of the International Monetary Fund (IMF), Kristalina Georgieva, warned that the strategy of US Treasury Secretary Scott Bessent to reduce public debt by accelerating economic growth is not enough and must be accompanied by concrete measures to reduce the budget deficit, reports CNBC.
IMF warns of rising global debt
International Monetary Fund (IMF) Managing Director Kristalina Georgieva is calling on the world’s largest economies to address growing fiscal and trade imbalances. Speaking at the IMF and World Bank annual meetings in Bangkok, Thailand, on Wednesday,
IMF: US can’t grow its way out of $1T interest bill - The Daily Bo Snerdley
(The Center Square) – The United States cannot grow its way out of a debt load costing taxpayers more than $1 trillion a year in interest, the International Monetary Fund said Wednesday. Managing Director Kristalina Georgieva told reporters at the Fund’s annual meetings in Bangkok that growth “cannot deliver fast enough the necessary adjustment” and that “some measures will be necessary.” In her opening remarks she told policymakers generally …
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IMF: US can’t grow its way out of $1T interest bill
(The Center Square) – The United States cannot grow its way out of a debt load costing taxpayers more than $1 trillion a year in interest, the International Monetary Fund said Wednesday.
'There is no magic': IMF says U.S. and other nations must 'go in a direction of tightening' global debt as economic growth can't 'deliver fast enough'
Meanwhile, rising bond yields, reflecting higher premiums demanded by investors for taking on greater risk, have been disrupting financial markets.
"Growth helps, of course, but it is insufficient to bring the necessary adjustments in time," said Kristalina Georgieva, who believes that budgetary adjustments are necessary. The repairs are in line with the comments of the US Treasury Secretary the previous month, he who does not make a presence at the joint IMF and World Bank meeting in Bangkok.
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