U.S. budget deficit projected to fall to 6.5% of GDP in 2025 due to tariff collection…

IMF:

• Says increased tariffs to push global public debt to GDP ratio up by 2.8 percentage points in 2025 to 95.1% of GDP

• Global debt levels may top 117% of GDP by 2027 if revenues and output decline more significantly than current forecasts due to tariffs

• Fiscal monitor projects global public debt to reach 99.6% of global GDP by 2030, topping pandemic-era levels

• Fiscal projections are based on ‘reference projections’ of 2.8% global growth for 2025

• U.S. budget deficit projected to fall to 6.5% of GDP in 2025, 5.5% in 2026 vs 7.3% in 2024 due to tariff collections, continued growth

• U.S. budget projections based on policy announcements through April 2, assume 2017 individual tax cuts expire at year-end

This article was written by Greg Michalowski at www.forexlive.com.