US Budget Deficit Poses ‘Significant Risk’ for Global Outlooks: IMF by Andrew Moran – US Politics News

The U.S. budget deficit poses a “significant risk” for global fiscal developments and outlooks, according to the International Monetary Fund (IMF).
In its latest Fiscal Monitor report, IMF economists stated that U.S. and Chinese fiscal policies produce “profound effects” on the worldwide economy and present challenges for baseline fiscal projections in advanced and developing economies.
IMF experts combed through last year’s numbers and reported that the U.S. government showcased “remarkably large fiscal slippages,” as the deficit climbed to 8.8 percent of the gross domestic product (GDP), up from 4.1 percent of GDP in 2022. Income tax revenues tumbled by 3.1 percentage points of GDP amid lower capital gains tax receipts and delayed tax payment deadlines. Federal spending rose by 1.3 percentage points of GDP. Looking ahead, the budget shortfall is projected to represent more than 6 percent of GDP….