{
  "id": 14799906,
  "title": "Advanced economies must ‘act now’ to lower debt: IMF",
  "url": "https://urgent.news/2026/10/15/advanced-economies-must-act-now-to-lower-debt-imf",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-15T21:28:00.000Z",
  "source": {
    "name": "Qatar Tribune Business",
    "slug": "qatar-tribune-business",
    "url": "https://www.qatar-tribune.com/article/259400/business/advanced-economies-must-act-now-to-lower-debt-imf"
  },
  "original_language": "en",
  "account": "The International Monetary Fund has urged advanced economies to \"act now\" to reduce their mounting debt, amid soaring bond yields at multi-decade peaks and rising pressure on central banks to increase interest rates. Global public debt has reached its highest level since World War Two, with projections indicating it could soon surpass 100% of global gross domestic product. IMF deputy director Era Dabla-Norris emphasized the urgent need for countries, especially those with high debt levels, to take action to create space for higher spending pressures. The rise in debt has been widespread, but advanced economies have experienced a significant increase in their debt-to-GDP ratios since the 2008 financial crisis, the COVID-19 pandemic, and the ongoing conflicts in Ukraine and Iran. Since late February, bond yields have risen by an average of around 110 basis points, particularly on longer maturities. Factors contributing to this surge include heightened inflation expectations due to soaring energy prices caused by the Iran conflict, prompting central banks to raise rates to maintain price stability. The impact of higher rates has exacerbated the complexity of fiscal and monetary policy interactions, as short-term interest rate changes can quickly influence government borrowing costs. The IMF projects that worldwide, governments' average interest payments will surge from 2.3% of GDP in 2021 to 3.7% in 2031, with the U.S. interest payments expected to climb from 2.8% of GDP in 2021 to 5.7% in 2031, roughly equivalent to projected Social Security expenditure. In low-income countries, the situation is even more severe, with interest payments accounting for an average of 15% of tax revenues. To address this issue, the IMF suggests that governments must initiate fiscal consolidation now. Dabla-Norris stressed the importance of clear communication about the necessity of consolidation, which may involve painful spending cuts, and warned that higher benchmark yields in advanced economies could affect emerging markets by tightening global financial conditions. Delaying consolidation will only exacerbate the problem.",
  "summary": "AgenciesThe International Monetary Fund called for advanced economies to “act now” to address ballooning debt, with spiking bond yields at multi-decade highs and pressure growing o...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}