IMF chief Georgieva says growth will not solve US debt problem — Fortune
International Monetary Fund Managing Director Kristalina Georgieva said during the IMF annual meetings in Bangkok, Thailand, that economic growth alone will not solve the US public debt problem, which has reached $40.3 trillion. According to her, the country also needs to reduce its budget deficit to correct its fiscal situation, Fortune reports.
Growth will not replace budget changes
Georgieva noted that economic growth can make debt management easier, but it will not deliver the necessary adjustments quickly enough. According to the US Treasury Department, the ratio of the country’s gross public debt to GDP stands at about 126%.
According to an assessment by the Committee for a Responsible Federal Budget, US debt held by the public amounts to 100% of GDP. The organization called this level the highest since the end of World War II. If the federal government borrows faster than the economy grows, the debt-to-GDP ratio may increase even during economic growth.
More current news is available on the UA.News Telegram channel Telegram.
Differences with the US Treasury
David Zervos, an adviser to US Treasury Secretary Scott Bessent, questioned the accuracy of IMF forecasts in a comment to Fortune. He mentioned the fund’s assessments ahead of the 2008 global financial crisis and the 1997 Asian financial crisis. The IMF did not provide Fortune with an immediate comment in response to the statement.
Bessent previously said that steady 3% growth in the US economy, partly driven by the development of artificial intelligence, could be enough to solve the debt problem. At the same time, Congressional Budget Office Director Philip Swagel said that real GDP growth would need to reach 5–6% to stabilize the US fiscal trajectory, along with changes to budget revenues and expenditures.
Net interest payments on federal debt in fiscal year 2026 amounted to about 15% of federal spending and roughly 20% of revenues. The Committee for a Responsible Federal Budget forecasts that by fiscal year 2031, the average interest rate on federal debt will exceed economic growth rates.
