The International Monetary Fund has urged the United States to reduce its fiscal deficits, predicting steady economic growth by 2026. However, the path to managing inflation remains uncertain.
In its inaugural policy advice to the Trump administration, the IMF noted that U.S. deficits are likely to remain in the 7% to 8% of GDP range in the foreseeable future.
This deficit level is more than double the targets set by U.S. Treasury Secretary Scott Bessent. The IMF also projected that the consolidated general government debt will soar to 140% of GDP by 2031.
(With inputs from agencies.)