The IMF Calls On Countries Not To Tighten Their Finances Too Much.

international

According to the report, the developed economies maintained a tight fiscal policy as a whole in 2011. The average deficit accounted for 6.6% of the gross domestic product (GDP) from 7.6% in 2010, of which the euro area's fiscal tightening was the most obvious, and the overall deficit ratio dropped by two percentage points to 4.3%. Only Japan in developed countries increased the proportion of post disaster reconstruction deficit by 0.8 percentage points to 10.1%.

However, the scale of public debt in developed economies continued to increase rapidly in 2011, accounting for 103.5% of GDP, of which the proportion of public debt in the euro area increased by 3.1 percentage points to 88.4%, with the exception of Germany and Germany, the scale of public debt increased, while Japan's public debt ratio increased by 14.4 percentage points to 233.4%.

According to the report, the level of financial deficits of emerging economies has also decreased at different levels, with an average deficit of 2.6% in 2011, 1 percentage points lower than in 2010, and public debt scale accounting for 37.8% of GDP, 3 percentage points lower than that in 2010.

The report pointed out that the developed countries will continue to carry out fiscal consolidation in 2012, the deficit will continue to fall by 0.9 percentage points, and the proportion of public debt will increase by 4.1 percentage points.

At the same time, emerging economies

The report appealed that governments should not continue to tighten fiscal tightening policies in order to prevent economic growth as the economy is faced with downside risks and increased market concerns.

Although fiscal consolidation is still a priority in the medium term, governments should pay close attention to the pace of fiscal adjustment in the short term.

The report also said that the fiscal policies of emerging economies should reflect the different economic conditions and risks they face.

As debt levels are relatively low, emerging economies with rapidly expanding output gaps and declining inflation have more policy space to support economic activity; emerging economies with high commodity income and external capital inflows need to assess the risk of continued sharp reductions in revenues and capital; highly indebted and high deficit emerging economies have to rely on the market to adjust themselves.