IMF warns of high spending in Japan and United States, says Europe is on the right track for fiscal consolidation.
The Economist made a graph with budget defitcit as a percentage of GDP and Gross Government Debt with projection from the IMF WEO Spring 2011. The Economist: 'On April 13th President Barack Obama is set to present yet another plan to reduce the country's mammoth deficit. America's economy is so large, and foreign appetite for greenbacks so voracious, that it seems inconceivable that it could suffer a fate similar to that of Portugal or Greece. The IMF's World Economic Outlook (WEO), published today, aims to shatter such complacency. America, its authors write, lacks a credible strategy for dealing with its growing public debt, and is expanding its budget deficit at a time when it should be shrinking. The chart below, drawn from the WEO, illustrates the size of the problem America faces.'
|Source: The Economist|