Politics
IMF chief urges fiscal tightening as global debt hits postwar high
October 7, 2026 at 11:03 AM
Coverage
4 reports · 3 in Arabic, 1 in English · over 3 hours
MAMasrawy
صندوق النقد يدق جرس الإنذار: النفط والدين والذكاء الاصطناعي يحاصرون الاقتصاد العالمي
(opens the publisher’s site)
TGThe Guardian
IMF chief urges governments to tighten belts as global debt levels soar
(opens the publisher’s site)
AJAl Jazeera Arabic
من النفط إلى الذكاء الاصطناعي.. صندوق النقد يحذر من ضغوط تتواصل حتى 2027
(opens the publisher’s site)AJAl Jazeera Arabic
من النفط إلى الذكاء الاصطناعي.. صندوق النقد يحذر من ضغوط تتواصل حتى 2027
(opens the publisher’s site)IMF Managing Director Kristalina Georgieva, speaking in Singapore ahead of the IMF–World Bank annual meetings in Bangkok, called on governments to adopt decisive fiscal consolidation as debt ratios soar.
- Georgieva said global debt-to-GDP ratios have reached their highest level since the second world war and are on course to exceed 100% of output.
- She said governments cannot rely on economic growth to ease the debt burden and must make "very tough political choices" with credible medium-term consolidation plans.
- Georgieva forecast oil prices would remain high through 2027 and warned energy prices would stay elevated even if Gulf tensions end.
- Georgieva urged a "prudently hawkish bias" in monetary policy, noting the ECB, US Federal Reserve and Bank of Japan have raised rates while the Bank of England has held at 3.75%.
- Georgieva said oil prices around $100 per barrel and refinery bottlenecks are fueling inflation.
- Georgieva noted sovereign bond yields in the US, Germany and Japan are at their highest since 2007, 2009 and 1996 respectively.
- Georgieva said around 23 million additional people fell into extreme poverty between 2021 and 2024 and recommended targeted cash transfers.