IMF chief Kristalina Georgieva calls for urgent fiscal repairs in advanced economies

IMF Managing Director Kristalina Georgieva today calls for urgent fiscal repairs across advanced economies, urging governments to curb deficits and stabilize debt paths amid rising debt-servicing costs, Nikkei Asia reports. The warning lands as borrowing costs remain elevated and pandemic-era supports have left public balance sheets stretched in many rich countries. Without credible consolidation plans, growth and financial stability could be at risk, according to Nikkei Asia.

Georgieva is urging medium-term fiscal frameworks, spending discipline, and rebuilding buffers to handle future shocks, Nikkei Asia says. The appeal raises pressure on policymakers in the United States, Europe, and other rich markets to align budgets with tighter monetary conditions and rising age-related costs. Watch for IMF follow-on guidance and upcoming national budget updates that signal consolidation timelines and any market reaction. [Developing. This article will be updated.]