Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed the Fund’s expectation that global public debt will exceed 100% of the global GDP by 2029, led by advanced and emerging economies.

Georgieva stated ahead of the IMF and World Bank annual meetings that rising debt leads to inflation in interest payments, imposes upward pressure on borrowing costs, and reduces governments’ ability to cushion shocks.

Earlier this year, Georgieva announced that the United States is clear in its intention to take actions in trade, taxation, public spending, deregulation, immigration, technology, and digital assets. She warned that some countries face debt levels exceeding 70% of GDP, exposing them to risks of low growth and rising debt burdens.

She explained that policymakers have succeeded in lowering inflation rates in some countries, but inflation has risen again in others, which may lead to interest rate disparities and increased borrowing costs for emerging markets and developing economies.

Georgieva highlighted challenges facing governments, including job creation, strengthening social safety nets, adapting to national security requirements and reconstruction, as well as building capacity to face natural disasters and supporting economic diversification.