Kristalina Georgieva, head of the International Monetary Fund, warns: global debt may exceed 100% of GDP before 2030

Kristalina Georgieva, head of the International Monetary Fund, warns that the era of cheap money and economic growth fast enough to keep debt under control has ended. Global public debt is approaching post-World War II levels and could exceed 100% of GDP before 2030.

The message was delivered on Wednesday in Singapore, ahead of the annual meetings of the IMF and World Bank, scheduled for next week in Bangkok. Georgieva called on heavily indebted governments to cut and discipline their spending, warning that advanced economies have not adopted credible fiscal consolidation plans.

Financing costs are already rising, while ten-year bond yields in the United States, Germany and Japan have reached their highest levels in years. The IMF chief believes central banks may need tighter monetary policies to keep inflation under control.

The global economy is under simultaneous pressure from expensive energy and massive investment in artificial intelligence. The IMF estimates that AI could accelerate global growth, but Georgieva warns that the boom is inflationary and that investor disappointment could trigger a major shock in markets. The IMF will publish its new economic forecasts next week.