IMF chief sees growth, overheating, debt
risks from U.S. tax cuts
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[March 01, 2018]
YOGYAKARTA,
Indonesia (Reuters) - International Monetary Fund Managing Director
Christine Lagarde said on Thursday she sees positive and negative
effects from a "complicated" U.S. tax overhaul, including a near-term
growth bump that risks overheating the U.S. economy and a problematic
rise in debt. |
International Monetary Fund Managing Director Christine Lagarde looks on
during an IMF conference in Jakarta, Indonesia February 27, 2018.
REUTERS/Beawiharta |
Lagarde told Reuters in an interview on Thursday that tax cuts
can lift the U.S. growth rate by about 1.2 percentage points
over the three years through 2020, and that should help boost
global growth and trade for at least a few years.
"To the extent that growth is higher in the U.S. and because the
U.S. is a very open economy, it will probably increase the
demand from the U.S. to the other economies around the world,
and that's also a positive," Lagarde said during a week-long
trip to Indonesia.
(Reporting by David Lawder; Editing by Richard Borsuk)
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