The IMF has warned the US that its massive fiscal deficits have stoked inflation and pose “significant risks” for the global economy.
The fund said in its benchmark Fiscal Monitor that it expected the US to record a fiscal deficit of 7.1 per cent next year — more than three times the 2 per cent average for other advanced economies.
It also raised concerns over Chinese government debt, with the country set to record a deficit of 7.6 per cent in 2025 — more than double the 3.7 per cent average for other emerging markets — as Beijing copes with weak demand and a housing crisis.
The US and China were among four countries the fund named that “critically need to take policy action to address fundamental imbalances between spending and revenues”. The others were the UK and Italy.
Rampant spending by the US and China in particular could “have profound effects for the global economy and pose significant risks for baseline fiscal projections in other economies”, the IMF said.
The assessment comes amid mounting concerns among economists and investors that 2025 will prove a crunch year for US fiscal policy.
The presumptive Republican presidential nominee Donald Trump has pledged to make his 2017 tax cuts permanent, a move the Committee for a Responsible Federal Budget think-tank expects to cost $5tn over the next decade. Democrats have been accused by Republicans and economists of doing too little to cut “discretionary spending” on healthcare and social security.
On Tuesday, IMF chief economist Pierre-Olivier Gourinchas said… Lees verder
@ISIDEWITH2 weken2W
In hoeverre moeten individuele financiële beslissingen en consumentengedrag hiermee rekening houden, gezien de potentiële mondiale impact van de Amerikaanse schulden?
@ISIDEWITH2 weken2W
Hoe zet het idee dat de financiële beslissingen van een land wereldwijde economische problemen kunnen veroorzaken, je aan het denken over mondiale onderlinge verbondenheid?
@ISIDEWITH2 weken2W
Zou u hogere belastingen of lagere overheidsuitgaven steunen als dit de economie van het land zou stabiliseren en de mondiale financiële gezondheid zou beschermen?
@ISIDEWITH2 weken2W
Welke morele verantwoordelijkheid hebben landen, indien aanwezig, om de financiële stabiliteit te handhaven om negatieve gevolgen voor de wereldeconomie te voorkomen?
@ISIDEWITH2 weken2W
Hoe zou u zich voelen als het geld dat u vandaag spaart, sneller zijn waarde verliest vanwege de schulden van een ander land?