Global Economy Faces Major Fiscal & Growth Pressures, Says IMF

In a recent briefing, the International Monetary Fund warned that Europe’s growth remains weak and debt burdens high, and fiscal consolidation alone may not suffice to prevent debt problems spiralling. The IMF emphasised that trade disruptions, ageing populations and policy fragmentation are creating structural headwinds for the global economy, and that unless productivity improves significantly, traditional fiscal fixes will fall short. The institution called for stronger reform, innovation and investment to underpin future growth pathways.