U.S. Debt Path Remains Sustainable, Says IMF

The International Monetary Fund's fiscal affairs chief, Vitor Gaspar, has stated that the U.S. debt remains sustainable due to strong growth and flexible financial policies. Despite the steady growth of debt in terms of GDP, Gaspar suggests now is an appropriate time to begin fiscal consolidation.

Despite the ongoing growth of U.S. debt, the International Monetary Fund affirms its sustainability, citing strong economic foundations and adaptable financial policies. IMF fiscal chief Vitor Gaspar emphasized the current window for initiating fiscal consolidation during a press conference on Wednesday.

Gaspar pointed out that U.S. debt is expanding at about two percentage points of GDP annually. While acknowledging this trend cannot persist indefinitely, he remains confident in America's fiscal path, thanks to the variety of available policy instruments.

The combination of robust economic progress and easing financial conditions offers a conducive environment for managing debt trajectories, Gaspar asserted, highlighting the importance of strategic policymaking in maintaining fiscal health.

(With inputs from agencies.)