IMF: UK’s Need to Curb Rising Debt Is ‘Critical’

The International Monetary Fund (IMF) has warned of a critical need to reduce the UK public debt, suggesting that some recent government policies could worsen its trajectory in the medium term.

The organisation, comprised of 190 member countries, published its Fiscal Monitor outlook on Wednesday. Commenting on the state of the public debt in advanced economies, the IMF urged the UK to address “fundamental imbalances” between its spending and revenues.

The report said that although the recent cuts to national insurance contributions were “part-funded by well-conceived revenue raising measures,” they could exacerbate the state of UK national debt.

The IMF expects global debt to increase close to 100 percent of GDP by 2029, a trend led by China, Italy, the UK, and the United States. Britain’s general government debt, currently equivalent to 100 percent GDP, has been estimated to reach 110 percent by 2029.

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