While speaking to reporters on Wednesday after the fund’s annual review of American economic policies, IMF (International Monetary Fund) chief Kristalina Georgieva said that “the current account deficit is too big, to make it very simple for the audience.” The U.S’s current national debt is $38 trillion and presents a growing risk to the global economy, according to experts.
Georgieva said that the problem is recognized by the current United States administration. However, it doesn’t appear that much, if anything is being done about it.
The U.S. national debt will surge to 140% of GDP within five years, the IMF has warned, urging Washington to cut its fiscal deficit in order to get a handle on its outsized trade and current account gaps.
The IMF’s latest Article IV review projects US public debt will reach 140% of GDP by 2031 under current policies, while rising short‑term debt and a climbing debt‑to‑GDP ratio pose growing risks to both US and global stability. The fund said Washington needs a clear fiscal consolidation plan to put debt on a sustainable downward path. –RT
The IMF also urged the US to work constructively with its partners “to address concerns over unfair trade practices and agree on a coordinated reduction in trade restrictions and industrial policy distortions that have negative cross-border effects.”
“Where trade and investment measures (including tariffs and export controls) are put in place for national security reasons, such policies should be applied narrowly,” the IMF said.
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