IMF Managing Director Georgieva Urges Fiscal Consolidation and Focus on Price Stability Amid Global Shocks

Kristalina Georgieva, Managing Director of the International Monetary Fund, emphasized the need for central banks to remain focused on price stability and for high-debt countries to pursue fiscal consolidation. Speaking in Bangkok, she expressed support for recent tightening actions by the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan. Georgieva highlighted that tighter monetary policy increases government funding costs and that fiscal restraint is crucial for systemically significant advanced economies to manage spillovers. She also noted the macroeconomic challenges posed by energy supply shocks, high debts and deficits, and the short-term inflationary impact of artificial intelligence.