IMF urges spending cuts as global debt nears 100% GDP

Business Oct 14, 2026

The International Monetary Fund (IMF) is urging governments to cut back on spending and start reducing their debts, as global public debt was on track to reach 100% of GDP, the highest since World War II.

With borrowing getting more expensive, the IMF says waiting too long to fix budgets could leave countries less able to handle future crises.

IMF expects borrowing costs to climb

IMF director of the IMF's Fiscal Affairs Department Rodrigo Valdes highlighted that many countries are still planning to boost spending, even though interest payments in low-income nations now eat up over 15% of tax revenues.

The IMF expects borrowing costs will keep climbing, making it tougher for countries, especially those with high debt, to get their finances under control.