Bangkok:Economic growth alone will not be enough to manage the United States' public debt, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated at the IMF-World Bank annual meetings. She emphasized the need for additional measures to reduce fiscal deficits.

According to Anadolu Agency, Georgieva noted that while stronger growth could improve public finances, it would not lead to the necessary adjustments quickly enough. She highlighted that US Treasury Secretary Scott Bessent acknowledged the high federal deficits and debt, stressing the importance of returning to a more sustainable fiscal path.

Georgieva pointed out that US authorities were heavily relying on economic growth to address these imbalances. Bessent has argued that sustained growth above 3%, along with spending restraint, could lower the debt-to-GDP ratio. The administration cites investments in artificial intelligence, manufacturing expansion, and tax cuts as key factors driving economic activity.

Georgieva's remarks reflect the IMF's broader call for governments to enhance public finances as repeated shocks diminish their ability to respond to new crises. She mentioned that the global economy remains resilient yet is nearing its limits due to depleted energy and fiscal buffers, with inflation persistently high in many regions.

She urged policymakers to boost revenues, rationalize spending, and improve public financial management, ensuring that assistance during rising energy and food prices protects vulnerable populations. Georgieva also discussed the global outlook, influenced by an energy supply shock from the Middle East conflict and increased demand linked to artificial intelligence advancements.

Economies integrated into AI supply chains are generally performing better, while low-income countries and fragile states face significant pressures, particularly those reliant on energy imports or excluded from technological advancements.