IMF Managing Director Kristalina Georgieva said on Wednesday that US growth will not be enough to shrink public debt. She noted that debt is now above $40 trillion. "Growth of course helps, but it cannot deliver fast enough the necessary adjustments," she said. The US must now use other fiscal measures.
BANGKOK, Oct 14 (Reuters) - The United States cannot grow its way out of mounting public debt and needs to make other fiscal adjustments to put its debt on a more sustainable path, International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday.
Georgieva told reporters at IMF-World Bank annual meetings in Bangkok that US Treasury Secretary Scott Bessent recognizes that US deficits and overall debt, now above $40 trillion, are too high.
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"The authorities very much rely on strong growth in the United States" to help reduce debt, Georgieva said. "At the Fund, we believe that growth of course helps, but it cannot deliver fast enough the necessary adjustments. So, some (fiscal) measures would be necessary."