The IMF predicted the risk of the largest since COVID budget deficit in the world

Advanced economies are heading for their biggest budget deficits since the COVID-19 crisis of 2021. Such information is contained in the report of the International Monetary Fund (IMF), writes sb.by.

As TASS notes with reference to the Financial Times newspaper, in its study, the Fund predicted that borrowing of developed countries in 2026 will be set at 5.2 percent of GDP, and the budget deficit in the United States and China will reach or exceed 8 percent. The assessment comes after months of turbulence and uncertainty in global debt markets. Although the global economy has suffered an oil shock in part due to an investment boom caused by artificial intelligence, the risks associated with sovereign debt are increasing.

The IMF notes that developed countries need to take urgent measures to restore public finances

- A renewed focus should be placed on restoring fiscal space, given rising debt, higher borrowing costs, increasing government budget requirements and heightened uncertainty. The International Monetary Fund predicted an increase in oil prices by 41% in 2026