With U.S. debt above $40 trillion, the IMF chief warns that economic growth alone won’t solve the problem
Source: Fortune ·
Treasury Secretary Scott Bessent has said the U.S. can grow its way out of the debt.
From the source
The U.S. has a $40 trillion debt problem, and the leader of the IMF says supercharging the nation’s growth isn’t enough to solve it. Speaking during the International Monetary Fund’s annual meetings in Bangkok this week, IMF chief Kristalina Georgieva said that while growth can ease the U.S. debt problem, it isn’t a catch-all solution. “Growth, of course, helps but it cannot deliver fast enough the necessary adjustments,” she said, adding that the budget deficit must also come down. The Treasury Department pushed back against Georgieva’s warning by questioning the IMF’s forecasting record in a statement to Fortune. “When we see pieces on the IMF, it’s good to remember how messy their forecasts have been in the past,” said David Zervos, counselor to Treasury Secretary Scott Bessent, who pointed to rosy economic predictions before the 2008 global financial crisis and the 1997 Asian financial crisis as evidence. The IMF did not immediately respond to Fortune’s request for comment.…