IMF Chief Says Growth Alone Won’t Resolve U.S. Debt Challenge
Kristalina Georgieva said economic growth can help manage U.S. debt, but deficit reduction is also needed as borrowing reaches a record.
Key takeaways
- U.S. national debt stood at $40.3 trillion, according to Treasury data.
- IMF chief Kristalina Georgieva said growth alone cannot deliver needed fiscal adjustments.
IMF chief Kristalina Georgieva said economic growth alone will not solve the U.S. debt problem, calling for the budget deficit to fall as well. Treasury data put national debt at a record $40.3 trillion.
Speaking at the IMF’s annual meetings in Bangkok, Georgieva said growth could help but would not deliver necessary adjustments quickly enough. The Treasury Department challenged the IMF’s forecasting record in response, with Treasury counselor David Zervos citing forecasts before the 2008 global financial crisis and the 1997 Asian financial crisis.
Treasury Secretary Scott Bessent has argued that steady 3% economic growth, partly fueled by AI, could address the debt. Congressional Budget Office Director Phillip Swagel said stabilizing the U.S. financial trajectory through growth alone was probably not plausible, and that revenue and spending changes were needed.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
