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Apr 12, 2011

IMF WEO Spring 2011: Fiscal Balance Adjustment

The IMF says the following about fiscal deficits in developing countries: 'For 2011, fiscal consolidation is expected to be modest in advanced economies. As a result, the adjustment required to achieve prudent debt levels by 2030 remains very large'.

The next graph gives the: 'cyclically adjusted primary balance adjustment needed to bring the debt ratio to 60 percent by 2030. For Japan, the scenario assumes a reduction in net debt to 80 percent of GDP; this corresponds to a gross debt target of about 200 percent of GDP.'

Source: IMF

The United States still has to do a lot of adjustment as you can see. Germany has already met the fiscal adjustment it has to do.

CA: Canada, DE: Germany, ES: Spain, FR: France, GB: United Kingdom, IT: Italy, JP:
Japan, US: United States.

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