IMF: United States budget deficit threatens the global economy

According to the International Monetary Fund, the impressive budget deficit of the United States contributes to inflation and carries serious risks for the global economy, contributing to high fluctuations in government bond yields and exchange rates in different countries. The corresponding warning was published in the bulletin of the fund, reports

According to the fund's forecast, next year's deficit will be 3 times higher than the average in developed countries. The states are highly recommended to address the problem of significant predominance of expenditures over revenues, applying adequate policy levers, according to the IMF. The same measures, according to the agency, are needed in China, the UK and Italy.

The main problem, however, is the situation in the United States, the portal reports the words of the leading economist of the Fund Pierre-Olivier Gurinshasa. The deficit in 2023 more than doubled compared to the previous year - up to 8.8% of GDP, and this scale is striking. This state of affairs can prevent the Fed from achieving the 2% inflation target.