IMF chief says U.S. growth alone cannot curb debt

International Monetary Fund Managing Director Kristalina Georgieva said the United States cannot rely on economic growth alone to bring its mounting public debt under control, and that fiscal measures are needed to reduce deficits and put debt on a more sustainable path. Georgieva made the remarks on October 14 at the IMF and World Bank annual meetings in Bangkok. She said U.S. officials recognize that federal deficits and debt have grown too high, but growth would not deliver the necessary adjustments quickly enough. The United States’ debt was described in the reporting as exceeding $40 trillion. Her call formed part of a broader warning about debt pressures in major economies and their effects on lower-income countries. The IMF’s Fiscal Monitor, released Wednesday, said delays in addressing debt amid higher borrowing costs would make fiscal adjustment harder in coming years. Rodrigo Valdes, the IMF’s fiscal affairs chief, said higher yields had reduced governments’ room to maneuver. Georgieva also urged IMF members to fully fund facilities for low-income and vulnerable countries, including programs that provide concessional loans and debt-service relief.