Growing U.S. Public Debt not Sign for Concern: IMF

Chief Economist at the International Monetary Fund (IMF), Gita Gopinath, said on Tuesday that the growing public debt in the United States, due to increased spending is not a sign for major concern, Reuters reported.

Gopinath told reporters that the U.S. is in a better position to deal with the service of its debt now due to the historically low interest rates.

She went on to say that the massive $1.9 trillion relief package helped improve the IMF’s global growth outlook.

The IMF expects the global economy will grow by 6% in 2021, achieving the best growth rate since 1976, as it revised its growth forecast higher from 5.5%, saying that the unprecedented high levels of public expenditure to combat the coronavirus pandemic is pushing the global economy towards a strong recovery.