The International Monetary Fund (IMF) stresses the need to address the problem of the US national debt, which by 2032 will amount to 140% of GDP. This is stated in the IMF's report on the results of the annual review of the US economy based on Article 4 of its charter.
„There is an urgent need to stop the continued rise in the ratio of public debt to GDP. In the medium term, fiscal deficits and government debt to GDP are projected to remain significantly higher than pre-pandemic forecasts. Specifically, under current policies, public debt is expected to rise steadily and exceed 140% of GDP by 2032. Likewise, the government's budget deficit is expected to remain around 2.5% of GDP, higher than the level predicted during the Article 4 consultations in 2019”, is noted in the document.
According to the fund, “deficits and debt this high pose a growing risk to the US and global economies”. The financial institution emphasizes the need to "urgently remove" this problem.
Commenting on the situation surrounding the reduction of the US budget deficit at a press conference dedicated to the report in Washington, IMF Managing Director Kristalina Georgieva emphasized: “Not only in the US, but also in Europe, in other countries, in the countries with emerging and developing economies, it is clear that taking action to create fiscal space for the future is difficult, politically difficult and it is difficult to engage the public.“ She emphasized the need to explain to citizens how important it is for the government to take measures to reduce the budget deficit.