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

Show original

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."

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, stated that with bond yields soaring and borrowing costs reaching the highest levels in decades, governments are facing "very difficult political choices." She urged government officials to rein in spending. Speaking on the recent turmoil in the global bond market, she noted that the surge in energy prices triggered by the Iran war has pushed the ten-year borrowing costs of 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 seen significant sell-offs. Investors are under pressure from a combination of factors: the ongoing Middle East war, interest rate hikes by major central banks, and the continuously worsening public debt burdens of many of the world’s wealthiest countries. As the ratio of global debt to GDP is expected to soon exceed 100%, excessively high fiscal deficits and costly debt servicing have become "a major factor" affecting the health of the global economy. She emphasized that fiscal consolidation plans "have become an urgent priority."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

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

You may also like

Crypto prices