David Zervos, counselor to the U.S. Treasury Secretary, criticized the IMF’s debt warnings, pointing out that the Fund’s forecasts have often proved inaccurate in the past. IMF Managing Director Kristalina Georgieva warned during the annual IMF-World Bank meetings in Bangkok that U.S. economic growth would be insufficient to put mounting federal debt exceeding $40 trillion on a sustainable course. This caution was in response to U.S. Treasury Secretary Scott Bessent, who stated that the United States could “grow its way out” of a rising debt-to-GDP ratio. Global debt topped $365 trillion in the first half of the year, with many economists warning of the risks of an unsustainable debt spiral.
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