IMF Urges US to Curb Debt and China to Reduce Reliance on Exports

WASHINGTON — The International Monetary Fund has urged the United States to take stronger action to control its growing public debt and called on China to rely less on exports and encourage domestic consumption.

IMF Managing Director Kristalina Georgieva delivered the message during the IMF and World Bank's autumn meetings in Bangkok. She said economic growth alone would not be enough to bring down the United States' rising debt burden, highlighting the need for fiscal measures involving government spending and taxation.

The IMF has also warned that high borrowing costs and rising bond yields are placing additional pressure on countries with limited financial resources. For poorer nations, the cost of servicing debt can leave less money available for healthcare, education and other essential public services.

On China, Georgieva called for a shift towards stronger domestic consumption to help address economic imbalances associated with its export-led growth model.

The IMF's latest fiscal assessment also points to the need for governments to rebuild financial buffers and manage public finances carefully as borrowing becomes more expensive.

The warnings come as governments face competing demands to support economic growth, fund public services and manage rising debt. The IMF says policy choices in major economies can have wider consequences for global financial conditions and developing countries.