The International Monetary Fund (IMF) estimates that the US deficit is too high, as is the debt. He warned the country's authorities about the dangers of an overly aggressive trade policy, Bloomberg reports.
The agency emphasizes that the IMF's criticism of the United States, which is its largest shareholder, is a rather unusual event. It appeared after the fund slightly reduced from 2.7 to 2.6 percent of this year's growth forecast for the world's largest economy.
"The budget deficit is too large and creates a continuous upward trend in the debt-to-GDP ratio." The continued escalation of trade restrictions and the lack of progress in addressing the vulnerabilities that emerged in the 2023 banking crisis pose a serious risk of worsening the situation," the IMF said in its annual assessment of the state of the US economy.
Bloomberg reminds us that the non-partisan Congressional Budget Office (CBO) earlier in June increased this year's US budget deficit forecast by as much as 27 percent to $1.92 trillion. dollars. At the same time, he raised the budget deficit-to-GDP ratio forecast for the fiscal year ending in September to 6.7 percent. Earlier, 5.3 percent was expected. The CBO noted that over the past fifty years, the average US deficit-to-GDP ratio has been 3.7 percent.
The International Monetary Fund predicts that the U.S. public debt-to-GDP ratio will exceed 140 percent under current policies.
"There is a growing need to stop the ongoing increase in the ratio of public debt to GDP. The chronic budget deficit is a major and long-term policy failure that needs to be urgently addressed," the IMF said.
