IMF chief says the US public debt problem cannot be solved through GDP growth alone
IMF Managing Director Kristalina Georgieva said at a press conference during the IMF and World Bank annual meeting that the United States cannot solve its growing public debt problem through economic growth alone without adjusting taxes and budget spending. She called advanced economies, primarily the US and European countries, leaders in excessive indebtedness, noting that rising government bond yields hurt low-income countries. Georgieva said US budget deficit and debt levels are too high and must be brought to more acceptable levels, stressing that growth alone will not deliver the necessary changes fast enough. The IMF's Fiscal Monitor report released on October 14 also warned that delays in debt-reduction measures will complicate the problem amid rising borrowing costs.
Nilufar Karimova