The United States faces a record national debt exceeding $40 trillion, and the International Monetary Fund’s chief Kristalina Georgieva said economic growth alone cannot resolve the issue. Speaking at the IMF annual meetings in Bangkok this week, Georgieva emphasized that while growth helps, it cannot deliver the rapid fiscal adjustments needed. She stressed the importance of reducing the budget deficit alongside growth to address the debt challenge, according to fortune.com.
Georgieva’s remarks come amid rising concerns over the U.S. fiscal situation, with the Treasury Department data showing the gross debt-to-GDP ratio at about 126%, the highest since World War II. The Treasury Department responded to the IMF’s warnings by questioning the accuracy of its forecasts, citing past errors before the 2008 global financial crisis and the 1997 Asian financial crisis. David Zervos, counselor to Treasury Secretary Scott Bessent, highlighted these forecasting shortcomings in a statement to fortune.com.
The U.S. national debt is the largest globally, with publicly held debt at 100% of GDP, a level not seen since the post-World War II era. The IMF’s caution signals the complexity of the fiscal challenge, as relying solely on economic growth to reduce debt may be insufficient. The warning underscores the need for comprehensive fiscal policy measures to manage the budget deficit and debt sustainability, a concern shared by fiscal experts and policymakers.
The U.S. Treasury Department’s data released this week confirms the national debt stands at $40.3 trillion, marking a historic high. The IMF’s annual meetings in Bangkok where Georgieva spoke concluded on October 16, 2026.