The IMF Just Told Every Government in the World What Not to Do Right Now

When the IMF publishes its World Economic Outlook, most people focus on the growth and inflation numbers. But buried in the April 2026 report is a set of policy instructions to governments that is arguably more important than any single forecast. At the Spring Meetings in Washington, IMF Managing Director Kristalina Georgieva was direct and specific about what she wanted governments to avoid.

First, broad energy subsidies. The IMF's message was unambiguous: do not respond to higher fuel prices by subsidising energy for everyone. The 2022 episode after Russia's invasion of Ukraine showed that governments often spend 2% to 3% of GDP on energy support measures that are politically almost impossible to remove once in place. The IMF is urging targeted, temporary support for the most vulnerable households instead. Writing a cheque to everyone to cover higher petrol costs protects the wealthy as much as the poor and leaves governments with debt they cannot easily unwind.

Second, export controls and protectionism. Georgieva told the audience to "reject go-it-alone actions, export controls, price controls, and so on that can further upset global conditions." Several countries have already imposed or discussed food and fertilizer export restrictions as domestic prices rise. The fund's position is that these actions may protect one country's consumers in the short term but make the global supply shortage worse for everyone.

Third, fiscal overreach. The IMF's Fiscal Monitor, released alongside the WEO, highlighted that public debt in most G20 countries is significantly higher than it was 20 years ago, reflecting what Georgieva called "widespread neglect of fiscal consolidation in the periods when conditions permitted it." With debt already elevated, the room to respond to a prolonged shock with large additional spending is limited, and using it recklessly now could leave governments vulnerable to a crisis they cannot afford to fight.

Key Metrics:

IMF recommended fiscal support: targeted and temporary, not broad subsidies

2022 energy subsidy precedent: 2% to 3% of GDP in many countries (IMF)

IMF global debt observation: G20 debt highest in 20 years

IMF Spring Meetings: April 13 to 18, Washington D.C.