Governments must take prudent measures to manage debt and their fiscal policy amid weaker global economic growth and tighter monetary policy to avoid future economic pain, the International Monetary Fund (IMF) said on Monday.
Managing current high levels of debt will become increasingly difficult if the economic outlook continues to deteriorate and borrowing costs rise further, the Washington-based lender warned in a blog post.
“Governments should adopt fiscal strategies that help reduce inflationary pressures now and debt vulnerabilities over the medium term, including by containing expenditure growth while protecting priority areas, including support to those hardest hit by the cost-of-living crisis,” the IMF said.
“This would also f…
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