IMF chief warns 'not yet time to celebrate' as low growth and high debt weigh on global economy

The head of the International Monetary Fund cautioned on Thursday that high debt and low growth remained major impediments to the global economy.

IMF Managing Director Kristalina Georgieva told CNBC that while notable progress had been made in the global economic recovery, governments had become too accustomed to borrowing, with "anemic growth" adding to the challenges of servicing that debt.

"It's not yet time to celebrate," she told Karen Tso. "When we look into the challenges ahead of us, the biggest one is low growth, high debt. This is where we can and must do better," she added.

While Georgieva commended the work of major central banks in taming inflation, she noted that the achievements had not been universal and that some economies were continuing to struggle with higher prices, which was adding to social and political discontent.

"It is successful major economies that have done really well … and there are pockets in the world where inflation is still a problem," she said.

"The impact of higher prices remains, and it is making many people in many countries feel worse off and angry."

The comments come as finance ministers and central bank governors are set to meet next week in Washington DC for the 2024 annual meetings of the IMF and the World Bank Group. They will discuss topics including the world economic outlook, poverty eradication and the green energy transition.

Georgieva warned that international trade would no longer be the "engine of growth" it once was, highlighting the proliferation of restrictive policies among many economies.

The U.S. and the European Union have moved to impose a series of punitive tariffs against China over what they deem as Beijing's unfair trade practices.

"What we are seeing in the United