Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva has warned that rising public debt is limiting governments’ ability to spend and respond to economic challenges.

She says leaders must remain focused on major global pressures, including political tensions, trade issues, and rapid technological change.

Her comments come as the global economy faces renewed pressure from rising fuel prices linked to conflict in the Middle East. The situation has slowed economic growth and affected inflation levels.

According to the IMF’s April 2026 World Economic Outlook report, global economic growth for 2026 is now expected to reach 3.1%, while inflation is projected at 4.4% for the same year.

The IMF shared these updates during a media briefing in Washington, where it outlined its latest forecasts for both global and regional economies.

Georgieva says, “This time, in comparison to COVID, is the cumulative impact of shock upon shock. It has pushed debt to dangerously high levels. Global public debt is on track to breach 100% of GDP in 2029, a level not seen since the aftermath of World War II. So, to maintain their fiscal policy credibility, policymakers need to strike a careful balance between safeguarding fiscal sustainability and protecting those who are hit the hardest and have least capacity to respond. The good news is that many countries have so far avoided untargeted tax cuts, energy subsidies, and price controls. The not-so-good news is that we are seeing some countries putting in place untargeted measures, export controls, or broad-based tax cuts.”

Georgieva adds, “While the intention behind these measures may be good, it is to protect people from the shock, such untargeted actions will only prolong the pain of high prices. finally, even as policymakers respond to the short-term effects of this shock, they must not lose sight of broader forces affecting the global economy from geopolitics and trade to technology, demographics, and climate. we must adapt our policy to these long-term trends by accelerating growth-oriented reforms because these reforms will protect us from the shocks to come. Policymakers will need to carry out structural reforms to lift productivity and growth. A strong economy is the best buffer. And once this shock passes, then we need to rebuild policy space. now let me turn to the role of the IMF. As our global policy agenda makes clear, we serve as the firefighter for our member countries, and we are committed to helping them navigate this complex landscape.”

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