IMF says us deficit, must tackle

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12 April 2011 last updated at 16: 33 GMT  by Andrew Walker economics correspondent of the BBC World Service efforts by some US States such as Florida against their deficits with opposition it met is an urgent need for the United States against the deficit of public finances, after the International Monetary Fund (IMF).

The Organization has warned that risks to create the size of the deficit instability of financial markets.

However, the global economic recovery is strength, wins the IMF said.

In the developed economies, the private sector increasingly spending in ride that replaced recovery, it added.

This reduces the risks of a renewed recession Governments continue their expenditure to stop areas, said the IMF fiscal monitor.

However needed, the report warned that more developed economies to see levels of public debt.

"In developed countries, the United States, measures in particular must take that meet their tax obligations would allow" the IMF warned.

He said "market worry about sustainability remain subdued in the United States, but a further delay of the action could be costly tax, deficit increase still aggravated by rising income,".

The US deficit federal currently stands at $1.4 trillion (£ 858bn) and is achieving expected to be $1.5 trillion in the current financial year.

Deficit reduction

At the World Economic Forum meeting in Davos in January US Treasury, the U.S. Government's position on the government deficit Secretary Timothy Geithner explain.

"There is a greater recognition of the U.S. political system, that is our position not in the long-term, sustainable," said Mr Geithner.

"I know there are people who want to make very deep cuts that would undermine the recovery."

"You got to ensure that recovery does not hurt you and take risk so much that you damage the early expansion by shifting significant restrictions to prematurely."

"We go to not happen." There are some people who like to move to do... very quickly at very deep cuts in spending, but it is not the responsible way to do it. "

Competitive currency

The IMF twice-yearly review of the global economy also suggested that risks in emerging markets were building.

It said that some of them should allow their currencies to rise, from the inflation by cheaper imports.

There was a strong implication that China is a country, has the IMF in mind.

A stronger and therefore less competitive currency is something that many other countries in China want to see.

India is expected to continue to grow very strongly over the next two years, although not as fast as in 2010, when the IMF data it after faster than China has grown.