Public debt, the alarm from the International Monetary Fund: "Record levels"

Restoring public finances can no longer be postponed. This is the warning from the director general of the International Monetary Fund Kristalina Georgieva, who invites governments to adopt credible measures to contain debt and rebuild room for fiscal maneuver in an increasingly complex economic context.

Yields at maximums

According to Georgieva, the recent rise in energy prices linked to tensions in the Middle East has helped push long-term government bond yields to their highest levels in decades in the United States, Germany and Japan. The surge in financing costs comes in a phase already marked by sales on the bond markets, high rates and growing public debt.

Debt and deficit under observation

Speaking in Singapore, ahead of the annual meetings of the IMF and the World Bank, the number one of the Fund warned that global public debt is destined to exceed 100% of GDP. High deficits and higher debt servicing costs are, according to the IMF, a "major factor" affecting the health of the global economy.

Energy, AI and growth

Georgieva pointed to three main drivers for the global economic outlook: energy prices, artificial intelligence and government debt. Future growth prospects depend "on our ability to successfully address" these three factors, Georgieva emphasizes.

The request to governments

For the International Monetary Fund, credible fiscal consolidation plans and interventions capable of reducing the pressure on public budgets are needed. "Postponing is no longer possible", is the message from Georgieva, who also reiterated her support for prudent and restrictive monetary policies to counter inflationary risks.