IMF's Gopinath: High US deficits fueling demand, global growth, higher rates and US Dollar
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First Deputy Managing Director of the International Monetary Fund (IMF), Gita Gopinath, said on Saturday that the United States needs to raise revenues to bring down high budget deficits, even though they are helping to fuel global growth by stoking domestic US demand.
Key quotes
"The high levels of deficits are also supporting growth and demand in the U.S. that have positive spillover to the rest of the world.”
"But along with that growth, you're getting higher interest rates and a stronger dollar and the second two are creating more complications for the world.”
“IMF's estimates that the U.S. deficit for 2024 will reach 6.67% of GDP, rising to 7.06% in 2025, double the 3.5% number in 2015.”
Market reaction
As of writing, the US Dollar Index was down 0.03% to trade at 106.08 on the day.
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