IMF Managing Director Kristalina Georgieva said on Sept. 1 at the G20 finance
ministers and central bank governors meeting that this year’s 3% global growth
forecast masks severe divergence and that the outlook remains highly uncertain.
Rising developed-market bond yields have pushed up global interest rates, which
she flagged as a key concern. Global public-sector debt is approaching 100% of
GDP, above post‑WWII highs and expected to climb further. Disinflation has
stalled in many countries; mounting fiscal pressure is lifting core bond yields,
and fiscal–monetary interactions are worrying markets. She said the continued
rise in global rates is especially alarming — core yields in major advanced
economies are at multi‑year highs, raising global funding costs. Some emerging
markets have seen narrower spreads versus advanced economies, but that gain has
been offset by higher global benchmark rates. Georgieva added that the future
impact of artificial intelligence on productivity and financial stability
remains uncertain.
