IMF urges action on rising global debts
The International Monetary Fund has warned that record global debts pose a significant threat to the global economy. The institution projects that global public debt will exceed 100% of GDP by 2029, with particular focus on the United States and China. IMF Managing Director Kristalina Georgieva emphasized that the U.S. financial path is unsustainable and requires gradual reductions in budget deficits and debt levels. She pointed out that rising inflation could lead central banks to increase interest rates, which would make debt servicing more difficult. The fund called on governments to make greater efforts to reduce fiscal deficits and control debt levels in order to avoid a potential global financial crisis.
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