IMF and U.S. officials urge fiscal reforms and fair competition

During the IMF and World Bank annual meetings in Bangkok, leadership from both the International Monetary Fund and the United States Treasury addressed global economic imbalances and fiscal stability.

U.S. Treasury Secretary Scott Bessent called on the IMF to combat policies that distort market competition and harm employment, a statement widely interpreted as a critique of China’s export-heavy industrial model. Bessent also urged the World Bank to focus on reliable energy and to remove financing restrictions on oil and gas extraction projects.

IMF Managing Director Kristalina Georgieva emphasized that economic growth alone will not resolve the United States' debt issues, stating that fiscal or budgetary adjustments will be necessary. Georgieva also urged China to shift its economic model by increasing domestic consumption to reduce its reliance on exports. She summarized the global requirement as: ‘China must spend more, the United States must save more, and Europe must invest more.’

Rodrigo Valdes, leading fiscal issues at the IMF, warned that delays in fiscal consolidation will make future management more difficult, noting that rising bond yields are reducing the maneuvering room for governments.