IMF official Gita Gopinath links U.S. high budget deficits to global growth, higher interest rates, and a stronger dollar.

IMF First Deputy Managing Director Gita Gopinath stated that the U.S.'s high budget deficits, driving global growth through increased domestic demand, also necessitate higher revenues. U.S. deficits are projected to rise, contributing to one of the world's steepest debt curves. While high deficits support U.S. growth, they lead to higher interest rates and a stronger dollar, causing challenges for the global economy.

April 20, 2024
7 Articles

Further Reading