The International Monetary Fund’s first deputy managing director, Gita Gopinath, addressed a tax forum at the IMF and World Bank spring meetings on Saturday:
- said U.S. deficits are expected to rise for years with one of the steepest debt curves in the world
- “High deficit levels also support growth and demand in the United States, which has positive spillover effects for the rest of the world,”
- “But along with that growth, there are higher interest rates and a stronger dollar, and the latter two create more complications for the world.”
The IMF estimates that the US deficit for 2024 will reach 6.67% of GDP, and will rise to 7.06% in 2025 (double the 3.5% in 2015).
Gopinath of the IMF
Gopinath said the IMF’s annual “Article IV” review of U.S. economic policies will be completed in the coming weeks and will recommend that the U.S.
- increase tax revenue
- reform costly Social Security and Medicare programs
to reduce deficits.
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Well, that’s not going to happen in an election year.
cnbctv18-forexlive
