IMF Pledges Engagement With Members to Tackle Global Imbalances

The International Monetary Fund has pledged to work with member countries to address global imbalances as public debt worldwide approaches 100% of gross domestic product. IMF Managing Director Kristalina Georgieva warned that the debt level has surpassed its post-World War II highs and is likely to climb further.

Speaking after the G20 Finance Ministers and Central Bank Governors’ Meeting in the United States, Georgieva said the global growth outlook for 2026 had firmed at around 3% since April. She said the world economy had absorbed the energy supply shock better than expected by drawing on oil and gas reserves, developing new energy sources and managing demand.

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Public debt, at almost 100 percent of GDP worldwide, now exceeds its post-World War II highs and is set to climb further.

Artificial intelligence investment, including spending on power projects to meet rising energy needs, is supporting growth in the United States and other economies linked to the AI value chain, including South Korea. But Georgieva stressed that headline averages conceal wide differences in economic performance and that risks remain high.

She said the energy shock had not ended. The Strait of Hormuz remained largely closed, strategic oil and gas reserves would need replenishing, AI was increasing energy demand and winter was approaching in the Northern Hemisphere.

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The energy shock is not over.

Georgieva also warned that disinflation had stalled in many countries. Fiscal pressures were pushing core bond yields higher, while the interaction between fiscal and monetary policy was worrying markets. The future effects of AI on productivity and financial stability also remained uncertain.

She said G20 discussions showed strong agreement on the need to raise potential growth through structural reforms and sound fiscal and monetary policies. International cooperation, she added, would be essential for helping countries manage debt, limit spillovers and address global imbalances. The IMF urged central banks to focus on price stability and fiscal authorities to set credible medium-term consolidation plans.

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In a shock-prone and uncertain world, structural reforms and sound fiscal and monetary policies are essential to creating the foundation for stronger and better-balanced global growth.