IMF Managing Director Kristalina Georgieva is urging governments to tighten spending as global public debt reaches its highest level since World War II and is projected to exceed 100% of global GDP before 2030.

She warned that rising government bond yields are increasing borrowing costs and putting additional pressure on already strained budgets, particularly in heavily indebted advanced economies.

Georgieva said governments can no longer depend on faster economic growth alone to reduce their debt burdens and should adopt credible plans to control spending and strengthen their finances.

She also called for central banks to remain focused on controlling inflation, noting that high energy prices linked to conflicts in the Middle East are adding to inflationary pressures, The Guardian has reported.

Georgieva warned that the rapid expansion of artificial intelligence could boost global growth but also create risks including job losses, cybersecurity threats and financial instability if investments fail to deliver expected returns.