The huge fiscal deficit of the United States is exacerbating inflation and posing significant risks to the global economy, said a report released earlier this week by the International Monetary Fund (IMF).
Financial Times recently reported that the IMF's latest Fiscal Monitor Report, released on April 17, shows that the U.S. fiscal deficit is expected to reach 7.1 percent of its gross domestic product (GDP) next year, while the average level of other developed economies is around 2 percent.
The Financial Times quoted the IMF report as saying that large-scale U.S. spending could have a profound impact on the global economy and pose risks to other economies. Therefore, the United States urgently needs to solve the serious imbalance between expenditure and revenue.
IMF data shows that last year, the fiscal deficits of developed economies such as the euro zone were under control, yet the United States saw a considerable fiscal decline, with the deficit accounting for 8.8 percent of its GDP, more than twice the level in 2022. The U.S. Treasury Department’s daily report on Dec 29 last year showed that the federal government's debt exceeded 34 trillion U.S. dollars.
Pierre-Olivier Gourinchas, economic counselor and director of research of the IMF, said the U.S. fiscal situation is particularly worrying, and complicates the Fed's response to high inflation. In the long term, this will increase fiscal and financial risks to the global economy, he said.
As U.S. borrowing costs are closely tied to global markets, the IMF noted that a sudden and sharp rise in U.S. interest rates would lead to a surge in global government bond yields, along with fluctuation in the currency exchange rates in emerging markets and developing economies.
US fiscal deficit to increase risk in global economy: IMF report
China has opened a new chapter of lunar exploration with the successful launch of the Chang'e-6 spacecraft on Friday.
A Long March-5 rocket, carrying the Chang'e-6 spacecraft, blasted off from the Wenchang Space Launch Site on the coast of China's southern island province of Hainan at 17:27 (Beijing Time).
Approximately 37 minutes after liftoff, the Chang'e-6 spacecraft separated from the rocket and entered its planned Earth-moon transfer orbit, which had a perigee altitude of 200 kilometers and an apogee altitude of about 380,000 kilometers, according to the China National Space Administration (CNSA).
The launch of the Chang'e-6 spacecraft was a complete success, the CNSA announced.
The Chang'e-6 spacecraft, like its predecessor Chang'e-5, comprises an orbiter, a lander, an ascender and a returner.
Regarded as one of the best open view sites, the beach at Qishui Bay in Longlou, a coastal town in Wenchang, attracted tens of thousands of people from all over the country to watch the launch.
"China is becoming more and more strong, and our technology is becoming more and more advanced," said one spectator.
"This is another exceptional, flawless launch, and I believe we have made a great start with a highly precise and accurate orbit insertion. We also wish the Chang'e-6 mission all the best," said Wang Jue, a technician at the China Aerospace Science and Technology Corporation.
"The entire set of parameters for today's launch is excellent, laying a solid foundation for us. We will carry out trans-lunar injection, followed by lunar landing on the far side of the moon, sampling, takeoff from the far side of the moon, rendezvous and docking, and finally, the return from the moon to Earth," said Zhang Gao, another technician at the China Aerospace Science and Technology Corporation.
China opens new chapter of lunar exploration with launch of Chang'e-6
