New Delhi, Oct. 13 -- Major economies face growing pressure to rein in fiscal deficits and rebuild financial buffers as high public debt and rising borrowing costs limit their ability to respond to future shocks, the International Monetary Fund (IMF) has warned, even as it projected global growth at 3.1 per cent in 2026 and 3.4 per cent in 2027.

In its October 2026 World Economic Outlook, the IMF said public debt remained high across many economies, while fiscal deficits in several countries were significantly larger than before the COVID-19 pandemic. The report cautioned that higher financing costs were adding to concerns over the sustainability of government finances.

"The global economy is again proving resilient, but unevenly so and...