IMF: US debt at 85% of GDP in 2016

29 June 2011, 14:25 | di FIRSTonline editorial team | 0

The International Monetary Fund issues a warning to the American government: the priority must be the stabilization of the short-term debt-Gross Domestic Product ratio – Subsequently, measures to reduce it will have to be devised.

US public debt will rise from the current 70,2% of gross domestic product to 85% in 2016, following an "unsustainable trajectory". These are the assessments of the International Monetary Fund contained in a report at the conclusion of an examination conducted in the US in June onthe economic and financial state of the country.
According to the Fund, the priority of the US government must be "to stabilize the debt-gross domestic product ratio by the middle of the decade and gradually reduce it in the following years". The executive will have to continue pursuing "a coherent and lasting fiscal consolidation, while ensuring that a still fragile recovery continues to make progress".

FIRSTonline editorial team

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