IMF chief warns of global debt risks at G20 meeting

At the G20 Finance Ministers and Central Bank Governors meeting in Asheville, North Carolina, IMF Managing Director Kristalina Georgieva warned of significant risks to global economic growth. Key concerns include persistent energy shocks, rising global public debt—which has reached nearly 100 per cent of global GDP—and stalled disinflation processes. Georgieva noted that rising bond yields in advanced economies could threaten the debt progress of developing and low-income nations.

On the sidelines of the summit, Indian Finance Minister Nirmala Sitharaman held several bilateral meetings, including with Georgieva and World Bank President Ajay Banga. The discussions focused on India’s strong economic performance, its evolving growth trajectory, and the need for macroeconomic assessments to reflect structural shifts in emerging markets. Sitharaman also engaged with European and UK officials to discuss trade, investment, and supply chain resilience.

Other participants at the meeting included Reserve Bank of India Governor Sanjay Malhotra, who engaged with global counterparts on financial stability and international financial system reforms. The summit addressed critical issues such as AI-driven energy demand, global trade imbalances, and the necessity of credible medium-term fiscal consolidation plans.