Skip to content
Subscriber Only

IMF Warns of Possible ‘Spiral’ of Waning Growth, Escalating Debt

  • Global debt rising as emerging markets struggle, IMF says
  • Spending cuts could set off cycle, fund's fiscal chief says
Bloomberg business news

What Threats Are There to Global Financial Stability?

Global policy makers need to guard against a self-reinforcing “spiral” of weakening growth and rising debt that could require a coordinated response by the world’s major economies, according to the IMF’s top fiscal watchdog.

Most countries are on a higher debt path than they were a year ago, the International Monetary Fund said in its semi-annual Fiscal Monitor report released Wednesday. Fiscal deficits in 2015-2016 in emerging economies are projected to exceed levels during the global financial crisis, as countries struggle with low oil prices, cooling investor sentiment and intensifying geopolitical tensions.