Governments supporting households and businesses grappling with high energy costs by increasing budget deficits is unsustainable, International Monetary Fund boss Kristalina Georgieva tells AFP, citing 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 [over 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,” Georgieva says in an interview in Singapore.
