The Trump administration's strategy is not sufficient to reduce U.S. debt: the IMF says that debt could reach 142% of GDP by 2031

IMF Managing Director Kristalina Georgieva warned on Wednesday, at the IMF and World Bank meetings in Bangkok, that the US administration’s strategy of reducing the debt burden by accelerating economic growth is not sufficient. She called for concrete fiscal measures to reduce the budget deficit.

The warning comes after the United States’ public debt exceeded $40 trillion, while the yield on 10-year Treasury securities rose to approximately 5.2%, close to its highest level since 2002. Federal debt has surpassed 100% of GDP, and the deficit for fiscal year 2026 is estimated at more than 6% of GDP.

Treasury Secretary Scott Bessent is banking on economic growth of more than 3%, supported by investment in artificial intelligence, a revival of industrial production, and tax cuts. The IMF, however, forecasts growth of just 2.3% in 2026 and 2027.

According to the IMF, if current trends continue, US gross public debt will reach 142% of GDP by 2031. Georgieva called for a credible medium-term plan, stressing that imbalances cannot be corrected through economic growth alone.