IMF chief urges US and wealthy nations to rein in debt to ease global economic pressure
Kristalina Georgieva said growth alone cannot reduce deficits fast enough and warned that low-income countries face higher borrowing costs.
- 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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The head of the International Monetary Fund (IMF) has called on the US Treasury Department to reduce public debt, which is forecast to reach 142 percent of GDP, through specific fiscal measures instead of relying solely on economic growth, CNBC reported.
The US will not be able to solve the problem of rising public debt solely through economic growth without adjusting taxes and budgetary expenditures, said the IMF Managing Director, Kristalina Georgieva, at a press conference at the annual meeting of the International Monetary Fund and the World Bank.
IMF chief urges US, other wealthy nations to rein in debt to ease global economic pressure
Rising debt levels and global inflation, partly resulting from high energy costs due to the Iran war, have pushed interest rates to multidecade highs, adding to the burdens of the world's poorest nations
IMF chief urges US and other wealthy nations to rein in debt to ease global economic pressure
Bangkok: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Wednesday urged the United States and other wealthy nations to take urgent action to reduce mounting debt levels, warning that rising public debt is placing growing pressure on low-income countries and the global financial system.Speaking at the annual meetings of the IMF and World Bank in Bangkok, Georgieva said US Treasury Secretary Scott Bessent and other Ame…
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