IMF chief Kristalina Georgieva urges governments to address rising debt, boost revenues and reform spending as global economic risks intensify
BANGKOK: 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 the Annual Meetings of the IMF and the World Bank in Bangkok.
“Now is the time to enhance revenues, to rationalise spending and improve public financial management,” she said.
The comments come as officials and experts gather in the Thai capital to discuss challenges facing the global economy, as higher energy prices caused by the US war with Iran drive up costs.
In its closely watched World Economic Outlook released on Tuesday, the IMF raised its 2026 global growth forecast by 0.1 percentage points to 3.1 percent.
However, it warned that while there is new economic activity sparked by rising investment in artificial intelligence, poorer countries are not benefiting as they deal with soaring energy costs.
The global economy “remains resilient in the face of very frequent repetitive shocks and in the face of uncertainty”, Georgieva said at a news conference Wednesday. “But this resilience is reaching its limits.”
The IMF is “ringing the alarm bell on excessive global economic imbalances growing”, she added.
“To put it very simply, China needs to spend more, the US has to save more and Europe has to invest more,” she said.