Global current-account imbalances widen for first time in roughly a decade
Updated
Updated · Forbes · May 10
Global current-account imbalances widen for first time in roughly a decade
4 articles · Updated · Forbes · May 10
The IMF said the measure rose to 3.6% of world GDP in 2024 from 3% in 2023, with about two-thirds of the increase exceeding levels justified by fundamentals.
It said China, the United States and the euro area were the main drivers, and argued tariffs and sector-specific industrial policies would not effectively correct the gaps.
The fund said domestic macroeconomic policies, including fiscal consolidation, stronger demand in high-saving economies and productivity-boosting investment in weak-growth countries, are better remedies than trade-focused responses.
Can China fix global imbalances by boosting its consumption without jeopardizing its export-driven economic model?
Are today's global imbalances a bug to be fixed, or a permanent feature of a dollar-centric world?
With imbalances nearing pre-2008 levels, is the slow de-dollarization trend the real trigger for the next global financial crisis?