Public finances across the world are deteriorating, threatening to undermine the global recovery, the International Monetary Fund warned on Wednesday.
Urging nations to find a “comprehensive policy package” to improve growth and public finances, the fund said action was urgently needed to reduce vulnerabilities in the global economy it has been highlighting in Washington this week.
High debt, low inflation and low growth have added to fiscal pressures in advanced economies, increasing the burden of public debt compared with previous forecasts. As a result, the ratio of debt to national income — currently 107.6 per cent of national income — is now only expected to begin to decline in 2017.
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