IMF Managing Director Kristalina Georgieva stated in Singapore on October 7, ahead of the IMF and World Bank annual meetings scheduled for October 12–18 in Bangkok.

According to Georgieva, advanced economies—led by the United States—remain the biggest offenders, with debt-to-GDP ratios exceeding those of developing and low-income nations. Data from the Institute of International Finance indicates that total global debt—comprising both public and private obligations—has surpassed $365 trillion.

Georgieva urged authorities not to delay necessary measures and to adopt credible fiscal consolidation plans. She noted that relying solely on accelerated economic growth is no longer a viable strategy. Governments had enjoyed relatively favorable conditions for 17 years while interest rates remained below growth rates, but higher rates are bringing that era to an end.

The IMF chief linked debt pressures to inflation and bond yields. She noted that yields on 10-year government bonds in the US, Germany, and Japan have reached their highest levels since 2007, 2009, and 1996, respectively, and continue to rise. She identified rising energy costs, the AI ​​investment boom, tariffs, defense spending, and the increasing cost of debt servicing as sources of inflationary pressure. Oil prices remain near $100 per barrel, with Brent futures signaling high prices through 2027. "Now may be the right time for a cautiously tight monetary policy in many countries," Georgieva said, adding that rate hikes by the Federal Reserve, the ECB, and the Bank of Japan were "highly appropriate."

Earlier, according to Bloomberg, she stated that the IMF expects global public debt to exceed 100% of GDP in 2029—two years earlier than previously estimated.