Debt High, Too Early To Adjust Fiscal Policies-IMF |
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November 3, 2009
The International Monetary Fund Tuesday projected higher debt levels for the world's major economies but emphasized it was too soon to begin scaling back fiscal support for their economies.
The International Monetary Fund Tuesday projected higher debt levels for the world's major economies but emphasized it was too soon to begin scaling back fiscal support for their economies.
In its latest edition of "Cross-Country Fiscal Monitor," the IMF said government debt as a percentage of gross domestic product in the major economies is projected to reach 118 percent in 2014.
Much of the increase in debt in Group of Seven rich nations has climbed as governments bailed out banks and resuscitated economies, while tax revenues have fallen.
New IMF research shows that to stabilize the debt levels global interest rates would need to rise by as much as 2 percentage points.
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