IMF Chief Says U.S. Growth Alone Won’t Rein In Debt
Kristalina Georgieva says Washington needs budget measures as federal debt exceeds 100% of GDP and the deficit remains elevated.
Key takeaways
- Kristalina Georgieva said growth alone cannot reduce U.S. debt fast enough.
- The U.S. federal deficit is expected to top 6% of GDP for fiscal 2026.
- The IMF forecasts U.S. government debt at 142% of GDP by 2031.
International Monetary Fund Managing Director Kristalina Georgieva urged U.S. Treasury Secretary Scott Bessent to take steps to reduce the deficit, saying growth alone cannot bring down debt fast enough. She spoke Wednesday at the IMF-World Bank annual meetings in Bangkok, as U.S. federal debt exceeded 100% of GDP.
Georgieva said Bessent recognizes that deficits and debt have grown too high, but the administration is relying heavily on strong growth. “Some [fiscal] measures would be necessary,” she said.
Bessent has argued that sustained growth above 3%, alongside spending restraint, could lower the debt ratio. Trump administration officials have also pointed to artificial-intelligence investment, reshoring manufacturing and consumer tax cuts as support for growth.
The U.S. deficit is expected to top 6% of GDP for the fiscal year that ended Sept. 30, compared with 5.8% in fiscal 2025. The figures for the latest fiscal year had not yet been released.
The IMF forecasts U.S. growth of 2.3% in both 2026 and 2027, and projects gross government debt will reach 142% of GDP by 2031. Georgieva has urged governments to set credible medium-term plans to control deficits rather than rely on stronger growth alone.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
