The head of the International Monetary Fund has warned that the United States and other wealthy countries must confront rising debt and deficits, saying economic growth alone will not correct the pressures now spreading through global markets.

IMF Managing Director Kristalina Georgieva made the argument on Wednesday during the IMF and World Bank meetings in Bangkok. The Associated Press reported that she said the United States’ national debt had passed $40 trillion and that higher bond yields were disrupting financial markets.

Georgieva’s warning is not simply about the size of one country’s balance sheet. Higher borrowing costs in major economies can travel across borders through exchange rates, investment decisions and the price of credit. The impact is especially severe for lower-income countries, where interest payments compete with spending on health, infrastructure and social protection.

The IMF’s message is that growth helps but cannot deliver the necessary adjustment quickly enough. Georgieva called for deficit reduction and other measures described by economists as fiscal consolidation. Those choices are politically difficult because cutting spending or raising revenue can place immediate pressure on households, even when the aim is to prevent a deeper crisis later.

The meetings also produced a separate initiative aimed at the digital economy. AP reported that the IMF, World Bank Group and Bank of Thailand announced a “Bangkok Blueprint” to combat cybercrime, financial fraud and online scams. The announcement reflects how economic security is increasingly connected to digital security: a scam can drain household savings, disrupt businesses and weaken trust in financial systems without looking like a conventional bank crisis.

Developing countries are carrying much of the burden. AP reported that the median developing country pays three times as much in interest as developed countries, while nearly 10% of government spending on average goes towards debt repayments. Those figures create a narrow space for job creation, investment and climate resilience.

The contradiction at the centre of the Bangkok discussions is clear. Governments need investment and growth to improve living standards, but borrowing to fund that growth becomes more expensive when global rates rise. Meanwhile, online fraud is turning private financial losses into a public policy problem that crosses borders.

The IMF’s prescription is familiar but politically demanding: reduce the deficit, keep financial systems stable and protect the countries with the least room to absorb shocks. Whether governments can turn that warning into coordinated action will be a more consequential test than the rhetoric of the meetings themselves.