IMF's Georgieva says US growth will not be enough to shrink debt

IMF Managing Director Kristalina Georgieva said on Wednesday that economic expansion alone will not be enough to reduce America's public debt, according to Business Recorder. Speaking to journalists during the yearly IMF-World Bank meetings in Bangkok, she argued that Washington also has to pursue additional fiscal changes so that its borrowing follows a steadier trajectory.

Georgieva noted that US Treasury Secretary Scott Bessent accepts that the American deficit and total debt, which now exceed $40 trillion, are excessively high. She also pointed to Washington's reliance on robust growth as a route to lowering the debt burden, an approach she said helps but cannot work quickly enough by itself.

The Fund holds that growth is useful but cannot deliver the required changes fast enough, so other measures would be needed. The remarks focus on American public finances and do not name any company listed on the PSX.