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IMF Warn Increasing Debt State Forward

The International Monetary Fund (IMF), the rising public debt developed countries, leading to hamper efforts to spur economic recovery.

Growth level of debt can damage the trust investors and encourage increased interest rates, and ultimately reverse the increase economy, according to an IMF report.

“With the delays in the withdrawal of investor concerns about sustainability will increase, pushing the interest rate increase in government securities,recovery and increase the risk of ’snow ball’ debt,” said the institute based in Washington.

IMF says the public debt will reflect about 120 percent of gross domestic product (GDP) in 2014 in nine developed countries from Group 20 (G-20). It will reflect the increase of 40 percentage points since the beginning of the financial crisis and global economy in 2007.

The report highlights the growth of debt in the countries of Group Seven - the United Kingdom, Canada, France, Germany, Italy, Japan and the United States “- and Australia and South Korea, two other large countries in the G-20.

IMF ask developed countries to do more to reduce the budget deficit in the medium term. “Although the estimated fiscal balance improved in recent years because of the global economy to recover, the public debt in many countries more worrying,” said the 186 institutions that country.

The average ratio of debt to GDP of the G-20 consists of developed and developing countries, reaching 62.4 percent in the crisis level in 2007, increase to 82.1 percent in 2009 and is estimated to reach 86.6 percent in the year 2014.

The average ratio for the developed countries will increase from 78.6 percent in the year 2007 and exceed 100.6 percent of output this year. In the 2014, will be projected at 119.7 percent. “Although fiscal policy will continue to support activities to achieve recovery, the obvious strategy is required to balance fiscal consolidation in the medium term, such as improving the condition and ensure that the solvency (ability pay off debts,-red.) Awake,” said the IMF.

IMF, which has urged the country members to adopt stimulus measures to fight economic trends down a severe, they have been saying in recent months to formulate a strategy formula after the restoration in progress

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