Rich nations must cut debt as global shocks push up borrowing costs, IMF chief tells BBC
Kristalina Georgieva said governments must prioritize fiscal consolidation as UK borrowing reached £18.3 billion in August, above official forecasts.
- International Monetary Fund managing director Kristalina Georgieva warned advanced economies including the UK and US they must reduce borrowing and debt levels immediately following weeks of spiralling government interest costs.
- Georgieva said global economic shocks have been "pushing debt levels up like a staircase not to heaven," with governments taking "no action to contain that service cost."
- Borrowing reached £18.3bn in August, nearly a fifth higher than the year before, while the world's largest economy has seen its debt pile surpass $40tn.
- Prime Minister Andy Burnham faces pressure ahead of his first Budget next month, as Georgieva argued politicians need "courage" to take fiscally tough steps maintaining price stability.
- The IMF identified investment in artificial intelligence and energy supply shocks as opposing forces complicating economic normalization, with Georgieva stressing the need for oil exports from the Gulf to resume.
55 Articles
55 Articles
Developed countries including the US and Britain need to cut borrowing and reduce their debt, International Monetary Fund (IMF) Managing Director Kristalina Georgieva told the BBC. She said this after debt levels rose in recent weeks and the cost of servicing government bonds rose rapidly.
The head of the International Monetary Fund (IMF) sent a strong message to developed economies - including the US and Britain - calling on governments to limit borrowing and reduce debt levels. In an exclusive interview with the BBC, Kristalina Georgieva warned that successive economic turmoil has raised debt levels "like a staircase that does not lead to heaven", while, as she argued, governments have not yet taken sufficient measures to limit …
Public debt will exceed 100 percent of gross domestic product (GDP) in 2029, two years ahead of schedule, especially due to the increase in the United States and China, the International Monetary Fund warned.
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