IMF Urges G20 to Take Action on Mounting Global Debt Crisis
The International Monetary Fund (IMF), through its Managing Director Kristalina Georgieva, has called on the Group of Twenty (G20) major economies to intensify efforts to address the rising global debt crisis that continues to weigh heavily on developing economies.
Speaking during the IMF and World Bank Annual Meetings held in Washington from October 13 to 18, 2025, Georgieva emphasized that debt vulnerabilities remain a top global priority, especially as the world faces slow growth, high inflationary pressures, and increasing financial risks.
Georgieva stated that the IMF will continue to press G20 members to keep debt issues at the forefront of their agenda, warning that the soaring debt levels in many emerging and low-income countries pose a significant threat to financial stability and long-term economic development.
She noted that while the impact of U.S. tariffs has been less severe than anticipated, global uncertainty remains elevated, creating additional challenges for policymakers.
“The global economy is growing slowly, debt levels are high, and the risk of financial recession remains present,” Georgieva said, highlighting that the IMF is working closely with the World Bank to design programs that support countries facing liquidity and external financing pressures.
The meetings also discussed the recent escalation in trade tensions between the United States and China, following U.S. President Donald Trump’s threat to impose 100% tariffs on Chinese imports in response to Beijing’s restrictions on rare earth metal exports. Analysts warn that this escalation could further destabilize global trade and investment flows.
Additionally, the IMF reiterated its global growth forecast of around 3% for 2025, noting that the world economy continues to show resilience despite uncertainty and geopolitical tensions.
The IMF’s renewed call to the G20 underscores the urgency of addressing the global debt burden, particularly in developing economies where fiscal space is tightening. Without coordinated international action, rising debt levels could evolve into a broader financial crisis. Meanwhile, escalating trade frictions between the U.S. and China add further risks, making global policy coordination and cooperation essential for sustaining economic stability and long-term growth.
