IMF chief urges governments to tighten belts as global debt levels soar
Source: The Guardian ·
Kristalina Georgieva says big economies will have to make ‘very touch choices’ as soaring bond yields hit budgetsBusiness live – latest updatesThe head of the International Monetary Fund has called on governments across big economies to tighten their belts as soaring bond yields hit budgets.Speaking in Singapore, the IMF’s managing director, Kristalina Georgieva, said global debt-to-GDP ratios…
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The head of the International Monetary Fund has called on governments across big economies to tighten their belts as soaring bond yields hit budgets. Speaking in Singapore, the IMF’s managing director, Kristalina Georgieva, said global debt-to-GDP ratios were at their highest level since the second world war and on course to hit 100% in the coming years. She said governments could not rely on rapid economic growth to lift the burden of debt – and instead would have to make “very tough political choices”. Georgieva was speaking ahead of the IMF and World Bank annual meetings which are to be held in Bangkok next week. “My message to the world’s economic policymakers will be this: we cannot keep delaying necessary policy action – you have the tools, now have the wisdom to use them. “And yet we don’t see decisive action in the high-debt advanced economies where the need of the hour is for credible medium-term fiscal consolidation plans, supported in some cases by upfront fiscal…