How Soaring Bond Yields Pressure Big Economies Like the US, France
- On Wednesday in Bangkok, the International Monetary Fund urged advanced economies to immediately reduce government spending and cut deficits, warning that delays will make fiscal adjustments increasingly painful.
- Rising sovereign bond yields and high debt levels drive this pressure, with average public debt poised to hit 100 per cent of GDP, the highest level seen since World War Two.
- The Group of Seven economies saw 10-year government bond yields climb over 110 basis points since February, while US interest payments are projected to reach 5.3 per cent of GDP.
- "The fiscal results this year are worse than expected six months ago," Rodrigo Valdes, chief of the IMF's Fiscal Affairs department, told Reuters, urging immediate fiscal consolidation.
- Low-Income countries face heightened stress as interest payments consume over 15 per cent of tax revenues, prompting the IMF to advise these nations to strengthen tax systems and improve spending efficiency.
78 Articles
78 Articles
Jornal Expresso
Global public debt reached 94% of GDP in 2025 and is expected to reach 100% by 2029, in a framework of increasing pressures on public finances, points out the International Monetary Fund
Bangkok, Oct 14 (EFE).- The Director of the International Monetary Fund (IMF), Kristalina Georgieva, said on Wednesday that "China has to spend more, the United States save more and Europe invest more", after the agency warned that the increase of public debt demands a greater fiscal effort. Georgieva made those statements during a [...] The IMF entry warns that the rise in yields requires more fiscal adjustment to stabilize the debt was first p…
Global borrowing costs rise as bond yields increase: Fitch
The recent sharp and widespread increase in government bond yields represents a significant increase in real global borrowing costs. Bond yields have risen to multi-decade highs in the US, Germany, UK and Japan in recent weeks, as highlighted in Fitch Ratings’ latest Economic Monitor chart pack.
IMF rings alarm bell on 'excessive global imbalances'
The head of the International Monetary Fund on Wednesday called for countries to make "urgent repairs" to address fiscal balances as bond yields spike and pressure grows on governments to manage ballooning debt. "What is our loudest call to policymakers right now? Make urgent repairs to the fiscal house before the cracks widen," managing director Kristalina Georgieva said at a news conference on the sidelines of the annual meetings of the IMF an…
IMF Shoots a New Alarm: Public Debt Is Approaching 100% of GDP, the Highest Level After World War II
The International Monetary Fund (IMF) issued an urgent appeal to governments on Wednesday to reduce public expenditure, budget deficits and debts, warning that the postponement of these measures will make adjustments increasingly difficult. According to the institution, the average global public debt is approaching 100% of GDP, the highest level after the Second World War, Reuters reports.
At a press conference held today October 14 to announce the new Fiscal Monitor report, IMF analysts indicated that global public debt reached 94% of GDP in 2025 and is expected to reach 100% by 2029, driven mainly by the world's largest economies.
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