IMF rings alarm bell on 'excessive global imbalances'

The head of the International Monetary Fund on Wednesday called for countries to make "urgent repairs" to address fiscal balances as bond yields spike and pressure grows on governments to manage ballooning debt. "What is our loudest call to policymakers right now? Make urgent repairs to the fiscal house before the cracks widen," managing director Kristalina Georgieva said at a news conference on the sidelines of the annual meetings of the IMF and the World Bank in Bangkok. "Now is the time to enhance revenues, to rationalise spending and improve public financial management," she said. The global economy "remains resilient in the face of very frequent repetitive shocks and in the face of uncertainty", Georgieva said. "But this resilience is reaching its limits." The IMF is "ringing the alarm bell on excessive global economic imbalances growing", she added. "To put it very simply, China needs to spend more, the US has to save more and Europe has to invest more," Georgieva said. Her comments come as officials and experts gather in the Thai capital to discuss challenges facing the global economy as higher energy prices arising from US attacks on Iran drive up costs. In its closely watched World Economic Outlook released on Tuesday, the IMF raised...