Rising government debt and deficits in the world’s two largest economies could have spillover effects on the rest of the global economy.
The International Monetary Fund says countries heavily dependent on China – such as Australia – have to get their budgets in order sooner rather than later.
Australian house prices are out-performing most of the world,even after inflation,but pressure is growing on the business sector.
The unexpected result shocked market analysts who were expecting an improvement in the economy.
The IMF has painted a bleak picture of the distress in America’s commercial property market and the havoc it may wreak. Australia is not immune.
The International Monetary Fund forecasts inflation will not return to 2-3 per cent until 2026,suggesting well-targeted stimulus measures for struggling households.
A senior International Monetary Fund executive has warned that the rivalry between the US and China could lead to Cold War II and reverse decades of global integration and growth.
Argentina’s president-elect Javier Milei has a risky plan to respond to soaring inflation and decades of economic stagnation.
While the IMF has lifted its forecasts for China’s economic growth this year,it has painted a very different picture for the second half of the decade.
The IMF warns rates might have to climb for a little while longer while infrastructure costs fan inflation,which has reached 9 per cent for working families.
The world’s governments,businesses and households owe a record $367 trillion,with calls growing for governments to help cut debt levels.