International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated on Wednesday, September 23, 2026, that advanced economies like the United Kingdom and the United States must reduce borrowing and debt levels. In an interview at the United Nations General Assembly in New York, Georgieva noted that global economic shocks have increased debt while governments have not yet contained service costs.
The remarks follow a period of rising government borrowing costs attributed to inflation and oil supply disruptions caused by conflict. Georgieva urged politicians to prioritize fiscal consolidation—the process of reducing government deficits and debt accumulation—and called for central banks to maintain their focus on price stability.
In the United Kingdom, government borrowing reached £18.3 billion ($24.4 billion) in August, almost a fifth higher than the previous year. Debt interest payments for that month were the highest for any August since records began in 1997. In the United States, the national debt has surpassed $40 trillion, a figure that has doubled over the last decade.
Georgieva also identified potential risks to financial stability beyond government debt. She noted that large technology companies are competing in the bond market to fund artificial intelligence (AI) development, which may contribute to higher yields, or the interest rates paid on government debt. She also stated that a "loss of safe control" over AI systems could present a stability risk to the global financial system.
A person in these countries would likely notice these trends through upcoming fiscal decisions. In the UK, Prime Minister Andy Burnham is scheduled to deliver his first Budget next month, where rising debt costs are expected to influence decisions on taxes and government services. If borrowing costs remain high, a larger portion of tax revenue is diverted to interest payments. In the U.S., the doubling of debt in one decade sets a precedent for long-term fiscal planning that may require adjustments to federal programs or tax structures to maintain stability.
Next, the UK government will present its Budget in October 2026, which will detail specific tax and spending plans. The IMF continues to monitor global energy supplies, specifically calling for a durable resumption of oil and gas exports from the Gulf to stabilize energy shocks. Markets will also be watching the bond yields of major tech firms as they compete with government IOUs for investment capital to fund AI projects.