The IMF forecasts that deficits in the US and China will reach or exceed 8% of GDP in 2026, with net borrowing for advanced economies hitting 5.2% of GDP this year. The US fiscal deficit is projected to widen to 6.1% of GDP by 2027, the largest among the five major developed economies excluding pandemic years. While France and Germany are projected to see budget gaps widen to 5.2% and 4.1% by 2027, the UK is the only one of the group whose deficit is expected to narrow, falling to 3.1% next year.
Wednesday, October 21, 2026
Story
US Treasury Rejects IMF Warning of 8% Budget Deficits
US Markets6 days ago
The US government has rejected assertions by the International Monetary Fund that the country's fiscal deficits are reaching unsustainable levels. Officials at the Treasury Department dismissed the fund's alerts and termed the projection methods as 'messy' after Managing Director Kristalina Georgieva claimed that growth-based strategies, including those proposed by Scott Bessent, are insufficient to reduce the national debt pile.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.