Time for Major Economies to Get Their House in Order: IMF Chief

COLOMBO (News 1st); Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has issued a strong appeal to major economies to address the imbalances that are fueling global tensions and to safeguard economic and financial stability.

Speaking to reporters on Thursday (24) Georgieva emphasized the importance of certainty for economic growth. "Without certainty, businesses do not invest, households prefer to save rather than to spend, and this further weakens prospects for already weakened growth," she said.

Georgieva highlighted specific actions needed by major economies. She urged China to boost private consumption and shift towards services, while calling on the United States to reduce fiscal deficits. In Europe, she stressed the need to complete the Single Market, Banking Union, and Capital Markets Union, removing internal barriers to intra-EU trade. "Get it done," she asserted, encouraging all countries to lower their trade barriers, both tariff and nontariff.

The IMF Chief outlined two overarching priorities: addressing economic imbalances and safeguarding stability. She advised countries to rebuild fiscal buffers and ensure debt sustainability, noting that some may require temporary and targeted fiscal support due to shocks. Georgieva urged nations to define credible adjustment paths, protect key investments, maximize spending efficiency, and make space for long-term needs.