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America spends more money

America spends more money

The International Monetary Fund has called on the world's largest economy to rein in its spending. Because the forecasts look bleak.

Spend more than you earn: This is a well-mastered business model in most countries of the world. So does the US – but it is now calling the International Monetary Fund (IMF) into action. Its first deputy managing director, Geeta Gopinath, has called on the world's largest economy to bring its budget under control. Strong US economic growth gives the country plenty of room to cut spending and raise taxes, Gopinath told the Financial Times. “States should avoid the temptation to finance all expenditures by borrowing.”

According to IMF projections, the US budget deficit will be 7.1 percent next year. This is more than three times the industrialized countries' average of two percent. In 2024, the deficit in the US will already be 6.5 percent of GDP (after 8.8 percent in 2023). In the current fiscal year alone (starting in October and ending in September), the country has already spent $855 billion more than it earned.

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