Business · Singapore Bureau
IMF urges US fiscal reform, China economic rebalancing
The International Monetary Fund has called on the United States to implement tax and spending measures to address rising public debt, while pressing China to reduce its dependence on export-driven growth. IMF Managing Director Kristalina Georgieva said neither economy can rely on growth alone to resolve mounting fiscal challenges.
LSN Singapore ·
The United States faces structural fiscal pressures that cannot be resolved through economic expansion alone, according to Kristalina Georgieva, managing director of the International Monetary Fund. Speaking in Bangkok on Wednesday, Georgieva emphasised that Washington requires concrete policy adjustments on taxation and government spending to manage its escalating public debt burden.
Separately, the IMF chief warned that China must fundamentally reshape its economic model away from export-led growth towards greater reliance on domestic consumption. The shift represents a critical adjustment as global trade dynamics continue to evolve and Beijing seeks to sustain long-term economic stability.
Georgieva's remarks come amid growing concerns about debt sustainability in major economies and shifts in global financial markets, particularly volatility in bond markets affecting developed and emerging economies alike. The IMF has consistently advocated for coordinated policy reforms across major economies to address structural imbalances.
Both the United States and China face significant economic crossroads, with policymakers in each country grappling with the need for substantive reforms to maintain growth and financial stability over the medium to long term, analysts noted.