IMF, in the USA the interest on the debt will reach the social spending

For the G7 economies "it is urgent" to correct the trend of public budgets. The warning comes from the International Monetary Fund in the 'fiscal monitor' published on the occasion of its annual meetings in Bangkok. "The major advanced economies with high debt need concrete measures anchored in credible medium-term plans and realistic assumptions" to "bring debt back to a sustainable path, contain borrowing costs and limit contagion effects on the rest of the world".

The report warns that interest spending is "becoming an increasingly large burden" that "narrows options". The document then contains an unusual reference to a single country, the USA, where interest spending would double from 2.8% of GDP before the pandemic to 5.7% in 2031, reaching a level "roughly equal to social benefits".