IMF Warns Rich Countries on Debt |
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May 14, 2010
The world’s rich economies are continuing to pile up public debt in spite of a recovery in the global economy, according to the International Monetary Fund.
The world’s rich economies are continuing to pile up public debt in spite of a recovery in the global economy, according to the International Monetary Fund.
In a regular report on public finances released on Friday, the fund suggested increases in value added taxes and excise duties as a way to plug the deficits.
The IMF said the overall global fiscal deficit would shrink at a lower rate than previously expected, falling only from 6.7 per cent in 2009 to 6 per cent in 2010, with the outlook for rich economies worsening markedly since the previous forecasts in November. “Even as the global economy improves, fiscal balances in the advanced economies are on average worsening,” it said.
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