Economics
IMF Urges Countries to Fix Imbalances as G-20 Braces for Trump
- Germany, South Korea should increase spending, IMF says
- U.S, U.K. should cut their fiscal deficits, fund recommends
Kirkegaard on Disagreements Ahead of the G-20 Summit
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The world’s richest nations should work together to address trade imbalances that may be undermining the resilience of the global economy and straining relations, the International Monetary Fund said.
Countries with excessive current-account surpluses, such as Germany and South Korea, should use fiscal policy to boost investment or domestic demand, the IMF said in an update on the global economy ahead of Group of 20 meetings this week in Hamburg. Meanwhile, nations like the U.S. and U.K. with excessive deficits should tighten their fiscal belts, according to the Washington-based fund.