IMF Says Most Advanced Nations Making Progress Reducing Deficits

Most advanced nations are making progress in narrowing deficits even as global growth slows, while the U.S. and Japan must set out clear policies to reduce debt at a sustained pace, the International Monetary Fund said.

Fiscal shortfalls in advanced economies will narrow to an average of 5.9 percent of gross domestic product this year and 4.9 percent in 2013, from 6.6 percent in 2011, the IMF predicted in its semi-annual Fiscal Monitor report released in Tokyo today. The forecasts are higher than in July, when it estimated deficits to average 5.8 percent of GDP in 2012 and 4.7 percent next year.