IMF-News Information blog

With many countries still experiencing an uncertain economic outlook, charting a course back to economic prosperity might prove to be difficult, but not impossible, delegates at a conference said.

With economic uncertainty still lingering over many economies, policymakers, academics, and senior IMF officials gathered for the 3rd Annual Fiscal Forum to discuss global fiscal issues.

A day earlier, the IMF released its latest analysis of government debt and deficits across the world, saying fiscal risks are declining for many countries but remain very high in others.

In its report, the IMF identified three key policy implications:

• Fiscal policy should proceed at a steady pace—not too slow, not too fast

• Implementing a clear medium-term fiscal adjustment plan is a key requirement for sustainable growth

• Growth enhancing measures are important for the fiscal accounts

Particularly for the advanced economies, the IMF said fiscal adjustment through spending cuts or tax hikes is necessary to help ensure continued progress toward sound public finances. The adjustment can be painful if deficits are slashed by too much and too quickly because this risks stifling economic growth.