The US’s yawning deficit is set to remain the widest among the world’s richest countries despite revenues from Donald Trump’s trade tariffs, with the IMF warning the world’s largest economy needs to put its finances in order “sooner rather than later”.
The IMF’s latest Fiscal Monitor showed the US’s general government overall balance — a measure which includes interest payments on debt holdings — was set to be the highest of any rich nation tracked by the fund for this year and the rest of the decade.
The US, unlike most other rich nations, is not expected to make any progress in lowering its deficit from current levels. The country’s gross debt-to-GDP ratio will surpass previous record highs to hit 143 per cent by the end of the decade, according to the IMF’s latest projections.