The International Monetary Fund says rising bond yields in major economies could strain government budgets worldwide, adding to debt pressures even as it expects global growth to pick up in 2027.
An IMF analysis found that the Group of Seven’s (G7) average yield on 10-year government bonds climbed by more than one percentage point from February to September 2026. The fund projects that worldwide public debt will exceed a year’s global economic output by 2030. Low-income countries already spend more than 15% of fiscal revenue on interest payments.
The IMF cited an oil-price shock, inflation, investment demand linked to artificial intelligence and fiscal pressures among the forces pushing yields higher. It said higher yields in major economies can make borrowing more expensive elsewhere, narrowing the money available for public investment and social programs.
The fund’s outlook puts global growth at 3.1% in 2026 and 3.4% in 2027. IMF Managing Director Kristalina Georgieva said economies connected to AI supply chains were faring better. Low-income and fragile economies faced greater strain, particularly energy importers outside the technology boom, she said.
The IMF’s financial stability report identified a market risk if AI investment or profits disappoint. Prices of related assets could fall, it said, with leverage and concentrated holdings magnifying the effect.
Ukraine was another point of division at the IMF and World Bank Group meetings in Bangkok. National Bank of Ukraine Governor Andriy Pyshnyi told European Pravda that he and other delegation heads left an Oct. 17 session of the International Monetary and Financial Committee (IMFC) while Russian Finance Minister Anton Siluanov spoke.
Separately, the European Bank for Reconstruction and Development (EBRD) said the G7 announced a €260 million commitment on Oct. 15 toward repairs to Chornobyl’s New Safe Confinement. The bank said a Russian drone strike damaged the structure in February 2025. It estimates the repairs will cost at least €500 million and has scheduled a donor conference in Paris for Nov. 9 to seek further contributions.
