IMF: High Debt Hampers Countries’ Response to a Fast-Changing Global Economy

Economic growth is slowing and public debt remains high across the world. Meanwhile, demographic changes and technological advances are reshaping the global economy.

Everyone’s opportunities for a good education, along with their job prospects, healthcare, and retirement income depend on the tax and spending choices governments make as they respond to these challenges.

What should policymakers do?

In the new Fiscal Monitor, we argue that they can take a long-term view to foster higher and more inclusive growth. This means getting their fiscal houses in order by gradually lowering debt to prepare for the next downturn and upgrading fiscal policy to invest in people’s futures. This requires better allocating spending, creating more room in the budget, and improving tax policy.Each country will have to identify an appropriate strategy to make room in its budget to help the economy during the next downturn.

High Debt Hampers Countries’ Response to a Fast-Changing Global Economy

Πηγή: blogs.imf.org