IMF Urges U.S. to Tackle Mounting Fiscal Deficits
The International Monetary Fund advised the United States to address its fiscal deficits as it forecasts steady economic growth by 2026. The IMF's guidance marks its initial recommendations for the Trump administration, highlighting that fiscal deficits could remain significantly high in the forthcoming years, prompting concerns over inflation.
Devdiscourse News Desk | Washington DC | Updated: 26-02-2026 03:48 IST | Created: 26-02-2026 03:48 IST
- Country:
- United States
The International Monetary Fund has urged the United States to reduce its fiscal deficits, predicting steady economic growth by 2026. However, the path to managing inflation remains uncertain.
In its inaugural policy advice to the Trump administration, the IMF noted that U.S. deficits are likely to remain in the 7% to 8% of GDP range in the foreseeable future.
This deficit level is more than double the targets set by U.S. Treasury Secretary Scott Bessent. The IMF also projected that the consolidated general government debt will soar to 140% of GDP by 2031.
Advertisement
ALSO READ
-
Oman's foreign minister says the next round of talks between the United States and Iran will be Thursday in Geneva, reports AP.
-
IMF Urges Clear Mandate and Dedicated Team for Bhutan’s Fintech Sandbox
-
Optimistic about AI, but it poses significant risks; could bring Tsunami in job market: IMF MD Georgieva.
-
IMF Managing Director Georgieva says India's Viksit Bharat goal is achievable.
-
International Monetary Fund (IMF) Managing Director Kristalina Georgieva says AI can lift global growth by 0.8 pc.
Google News