IMF chief signals austerity is back as global public debt heads for 100% of GDP

AI Summary

IMF chief Kristalina Georgieva called on heavily indebted governments to tighten spending and urged central banks to maintain a hawkish stance as global public debt approaches 100% of GDP. She cited the Iran war’s energy shock and a credit-fuelled AI investment boom among pressures on the global economy.

IMF chief Kristalina Georgieva has urged heavily indebted governments to tighten their belts and central banks to take a hawkish stance, signalling a return to austerity as the energy shock from the Iran war, record public debt and a credit-fuelled AI investment boom weigh on the global economy.