WASHINGTON — Escalating global uncertainty from rising tariffs and volatile financial markets has increased fiscal pressure on emerging markets and developing economies, which are already burdened by high debt levels, the International Monetary Fund warned Wednesday.
A recent series of tariff announcements by the United States, along with retaliatory actions from other countries, has “increased financial market volatility, weakened growth prospects, and increased risks”, according to the latest Fiscal Monitor report released at the IMF’s Wednesday press briefing in Washington.
This warning came as many emerging markets and developing economies grappled with elevated debt levels, largely a legacy of pandemic-era spending, and the tighter global financial conditions that followed.
Treasury Secretary Scott Bessent on the same day criticized the IMF and World Banks’ role in helping…
