IMF cautions govts to exercise fiscal restraint as record number of countries hold elections this year

The International Monetary Fund (IMF) has advised governments worldwide to practice fiscal restraint, especially in 2024, when a record number of countries, representing over half of the global population, are holding national elections.

The IMF highlighted that historically, governments tend to increase spending and reduce taxes during election years, leading to deficits that often exceed forecasts by 0.4 percentage points of GDP.

The IMF emphasized the importance of maintaining sound public finances during this critical period.