China spend, US save, Europe invest: IMF chief calls for ‘urgent repairs’ to fiscal house as debt pressures grow

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok October 14, 2026. — AFP pic

First Published: Wednesday, 14 Oct 2026 2:45 PM MYT

BANGKOK, Oct 14 — The head of the International Monetary Fund today 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 yesterday, the IMF raised its 2026 global growth forecast by 0.1 percentage points to 3.1 per cent.

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 today. “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. — AFP