International Monetary Fund (IMF) Managing Director Kristalina Georgieva said it will be politically difficult for the United States to start reducing government debt and budget deficits, but now is the right time to start. This was reported by RIA News.
Taking action to create fiscal space is complex and politically difficult, not just in the United States but also in Europe and other countries, including emerging economies, he said.
Georgieva emphasized that the IMF sees opportunities to achieve such goals and that now is the right time to do so in order to prepare for future threats.
Before this IMF guess He described the rise of the US public debt to GDP ratio to 140 percent as a threat to the global economy.
This development of the situation is called a threat to the stability of the world economy, but in general, according to IMF experts, the risks remain moderate.
To steadily reduce the level of public debt, the IMF recommends that the United States pursue “a credible medium-term fiscal adjustment that includes reprioritization of budget programs and income tax reform.”
Previously in the US Congress warned About a possible shock to the economy due to debt.