Economics
World Economy Faces New Fiscal Cliffs Amid Pressure for Spending
- Budget deficits seen narrowing as IMF warns of premature cuts
- Fiscal drag likely on world economy in 2021, says JPMorgan
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The world’s major economies poured money into the fight against the coronavirus slump, and now they’re edging toward what may be a more complex policy choice: when and how to turn off the spigots.
Governments have pledged some $12 trillion in spending this year, the International Monetary Fund estimates. While the fund says it’s too early to cut off the support, it warns record debt levels will eventually pose a challenge for policy makers.