economy
February 27, 2026
IMF issues national debt warning to US
US national debt will surge to 140% of GDP by 2031, the IMF has warned, urging Washington to slash its fiscal deficit
TL;DR
- US national debt exceeds $38 trillion and is projected to reach 140% of GDP by 2031.
- The IMF has urged the US to slash its fiscal deficit and create a plan for debt sustainability.
- The current account deficit is considered too large by the IMF.
- Rising debt and fiscal shortfalls pose risks to US and global economic stability.
- The IMF recommends constructive international cooperation on trade and industrial policies.
- US economic growth is expected to be resilient, but inflation may not return to target until early 2027.
- US public debt, while a safe global asset, can lead to higher borrowing costs and inflation if debt continues to rise.
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