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The International Monetary Fund (IMF) has called on the United States to urgently address its growing fiscal challenges, critiquing the tax proposals of both presidential candidates just before their first electoral debate.
In its annual Article IV assessment of the US economy, the IMF projected that the debt-to-GDP ratio could reach 140 percent by 2032, significantly higher than the current 120.7 percent. This increase is attributed to anticipated fiscal deficits, potentially exceeding post-World War II levels.
“Such high deficits and debt pose increasing risks to both the US and global economy, potentially leading to higher fiscal financing costs and challenges in managing maturing obligations,” the IMF stated in its Article IV report. “These chronic fiscal deficits represent a substantial and ongoing policy misalignment that requires urgent attention.”
The IMF’s warnings follow a Congressional Budget Office forecast predicting a deficit of $1.9 trillion this year, or about 7 percent of GDP, up from a February estimate of $1.5 trillion.
In its annual Article IV assessment of the US economy, the IMF projected that the debt-to-GDP ratio could reach 140 percent by 2032, significantly higher than the current 120.7 percent. This increase is attributed to anticipated fiscal deficits, potentially exceeding post-World War II levels.
“Such high deficits and debt pose increasing risks to both the US and global economy, potentially leading to higher fiscal financing costs and challenges in managing maturing obligations,” the IMF stated in its Article IV report. “These chronic fiscal deficits represent a substantial and ongoing policy misalignment that requires urgent attention.”
The IMF’s warnings follow a Congressional Budget Office forecast predicting a deficit of $1.9 trillion this year, or about 7 percent of GDP, up from a February estimate of $1.5 trillion.
Source: Graphionline.com
