The IMF President urges countries to control spending, stating that fiscal adjustment has become an urgent priority.

智通财经2026/10/07 06:22

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IMF Managing Director Kristalina Georgieva stated that with bond yields surging and borrowing costs reaching multi-decade highs, governments are facing "very difficult political choices," urging officials to control spending. Referring to recent turmoil in global bond markets, she noted that the energy price hikes triggered by the Iran war have pushed 10-year borrowing costs in the United States, Germany, and Japan to their highest levels in decades—and they are "still climbing." In recent months, the global bond market has experienced significant sell-offs. Investors are facing compounded pressures from ongoing conflict in the Middle East, interest rate hikes by major central banks, and increasingly burdensome public debts in many of the world's wealthiest countries. With the global debt-to-GDP ratio expected to soon exceed 100%, excessive fiscal deficits and the high cost of debt servicing have become "a major factor" affecting global economic health. She stated that fiscal consolidation plans "are now an urgent priority."

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