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IMF Presses Private‑Sector Reforms as It Flags Debt, Shadow‑Banking and Trade Risks

Georgieva says vulnerabilities in private credit could derail resilience even after a small upgrade to the 2025 global growth forecast.

Overview

  • Unveiling its Global Policy Agenda, the IMF urged regulatory house cleaning, pro‑competition reforms and rebuilding of fiscal and monetary buffers to bolster private‑sector‑led growth.
  • The Fund warned global public debt is on track to approach 100% of GDP by 2029, singling out persistent U.S. deficits as a key concern.
  • Its Global Financial Stability analysis highlighted rising risks from non‑bank financial institutions and private credit, with banks in the U.S. and Europe holding roughly $4.5 trillion of exposure.
  • Georgieva called for easing U.S.–China frictions, cautioning that any rare‑earth supply cutoff would have a material impact on global growth.
  • The IMF lifted its 2025 global growth outlook to 3.2% but cautioned that stretched market valuations and a potential reversal in AI‑driven investment could quickly sap momentum.