Energy crisis deficits cannot continue, IMF chief says

International Monetary Fund chief Kristalina Georgieva said governments cannot keep increasing budget deficits to support households and businesses facing high energy costs.

Speaking in an interview in Singapore on Wednesday, Georgieva cited rising interest rates and borrowing costs.

“We had Covid, we had the war in Ukraine, we had then inflation shock, interest rates jumping and now we have the energy shock,” she said, referring to the Middle East war. “Every time, the governments came to the rescue of people and businesses by borrowing and increasing the deficit, and that just cannot go on any longer.”