IMF says higher bond yields underscore urgency of fiscal consolidation
- 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.
38 Articles
38 Articles
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.
Observador
Rodrigo Valdés, director of the IMF's Department of Budget Affairs, argued that countries with high levels of debt must start adjustments before investors lose confidence
Rising interest rates, high deficits and ageing put pressure on public finances. The IMF demands a change of course before the financial markets force it.
El Mundo
Forbes EspañaThe International Monetary Fund (IMF) has urged all governments to undertake reforms in their public accounts for fiscal consolidation and balance, in an effort to...
At the IMF's annual meeting, Kristalina Georgieva appealed to governments. ...
Global Market: IMF urges governments to cut spending, reduce debt as borrowing costs rise
The IMF has urged governments worldwide to rein in spending, narrow budget deficits and reduce debt as global public debt approaches 100% of GDP. Rising bond yields and borrowing costs are adding to fiscal pressures and limiting room to tackle future economic shocks.
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