The International Monetary Fund (IMF) has issued a stark warning regarding the escalating national debt of the United States, predicting it will soar to 140% of GDP within the next five years. Currently, the national debt has surpassed $38 trillion and continues to grow; last year alone, it increased by $2.25 trillion. The fiscal deficit is also deepening, expanding from approximately $1.4 trillion in fiscal year 2022 to around $1.8 trillion in the following year. These figures highlight a troubling trend in the nation's fiscal health, prompting calls for urgent reforms to address the situation.

During a press briefing following the IMF's annual review of American economic policies, IMF chief Kristalina Georgieva emphasized the necessity for Washington to take measures to curtail its fiscal deficit, which contributes to substantial trade and current account imbalances. Georgieva stated that the current account deficit has reached an unsustainable level, which is acknowledged by the US administration, indicating an awareness but potentially a lack of decisive action to counteract these fiscal issues.

The IMF's assessment underscores the risks associated with rising national debt and fiscal deficits, which could have serious implications for the US economy and its global standing. As the debt escalates, the need for effective policy responses becomes increasingly urgent, with the international community closely monitoring how the US tackles these economic challenges in the years ahead.