Kristalina Georgieva, managing director (MD) of the International Monetary Fund (IMF), has urged countries to reduce debt levels, warning that excessive debt suffocates economies.
“The consequences are that we have to be much much more focused on bringing debt levels down, because very high level of debt suffocates economies,” she said.
“Although ironically, debt levels in advanced economies are still going up, debt levels in emerging markets are still going up”
The post highlights IMF Managing Director Kristalina Georgieva's statement at the 2025 World Bank/IMF Annual Meetings in Washington DC, urging nations to prioritize debt reduction as high levels "suffocate economies," with global debt rising in advanced and emerging markets while low-income countries face access barriers.
Emerging markets like Nigeria are particularly vulnerable, as evidenced by the country's public debt reaching N152.39 trillion ($99.65 billion) by June 2025, up from prior levels, straining fiscal space and amplifying risks of economic stagnation amid ongoing borrowing.
Replies from Nigerian users reflect domestic frustration with government borrowing under President Tinubu, contrasting it with past fiscal prudence and underscoring how such policies may exacerbate IMF-warned vulnerabilities in resource-constrained economies.
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