Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has called on governments worldwide to address mounting fiscal risks by undertaking credible and well-sequenced fiscal adjustments. This plea comes as global public debt is set to reach 100% of GDP by 2029, a year earlier than previously projected in April 2025. This increase is primarily driven by major economies and rising spending pressures across social needs, defense, and strategic autonomy, further strained by the Middle East conflict.
According to the IMF's April 2026 Fiscal Monitor, global public debt rose to just under 94% of GDP in 2025. The report highlights that public finances are under pressure due to increased interest burdens and structural shifts in sovereign debt markets, including the growing role of leveraged nonbank intermediaries and an erosion of the U.S. Treasury's safety premium. These factors are amplifying the vulnerability to repricing in financial markets.
The IMF has consistently warned about the deterioration of fiscal health globally. The April 2026 Fiscal Monitor notes that the global fiscal gap has diminished, indicating that current fiscal settings are insufficient to stabilize debt ratios. The United States, for example, is running a general government deficit of 7% to 8% of GDP with no clear debt consolidation plan, while China's overall deficit is nearly 8% of GDP due to near-term fiscal expansion. Defense spending surges, particularly in Europe where some EU members have activated escape clauses from deficit rules, also contribute significantly to higher deficits and increased public debt.
Georgieva has emphasized that the world needs to build foundations to withstand frequent shocks, stating that the global economy is not adequately prepared for the continuous crises it faces. The IMF Executive Board also stressed the urgency of rebuilding fiscal buffers and strengthening sustainability, advocating for temporary, targeted support for vulnerable households and credible medium-term fiscal plans, including revenue mobilization and improved spending efficiency.
