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IMF chief warns governments against delay as debt nears 100% of GDP

Kristalina Georgieva said global debt-to-GDP is at its highest since World War Two and is on track to reach 100% in coming years.

Reported · Written up by our desk · Emerging Markets

Kristalina Georgieva, managing director of the IMF, urged governments to start acting now rather than postponing economic policy decisions, speaking in Singapore ahead of the IMF and World Bank annual meetings.

Georgieva said global debt-to-GDP ratios are at their highest level since the Second World War, and she warned they are on course to reach 100% in the coming years.

She added that governments facing higher borrowing costs from soaring bond yields cannot rely on rapid economic growth to reduce debt burdens, and instead will need to make very tough political choices.

The IMF chief made the comments before meetings scheduled for Bangkok next week.

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