IMF Managing Director advises governments to reduce spending amidst global bond market downturn.

IMF Managing Director Kristalina Georgieva urged governments to curb spending, citing a global bond market sell-off driven by elevated energy prices, central bank rate hikes, and rising public debt. With global debt-to-GDP levels nearing 100%, she emphasized that large fiscal deficits and high debt-servicing costs are significantly impacting the global economy. This call for urgent fiscal consolidation highlights concerns about financial stability and sustainable economic growth.