RTTNews - The U.S. and the U.K. would have the highest budget deficits in 2009 among the world's top 20 advanced and emerging economies, a report from the International Monetary Fund showed Thursday.
According to the IMF staff report on the state of public finances, the budget deficit in the U.S. would be 13.5% of the gross domestic product or GDP. That compares to a deficit of 2.9% of GDP in 2007, the pre-crisis year. However, the deficit is expected to decrease to 9.7% of GDP in 2010.
In the U.K., the IMF forecasts a deficit of 11.6% of GDP, significantly larger than a deficit of 2.6% of GDP in 2007. The fiscal shortfall is expected to rise to 13.3% of GDP in 2010.
The third nation to record the biggest budget deficit is Japan, with a deficit of 10.3% GDP and it is anticipated to remain at this level in the next year.
The outlook for the public debt is more worrying in many countries, the IMF said. However, it urged advanced economies to continue fiscal policies to support economic activity until economic recovery takes hold.
Debt levels of advanced economies are expected to rise to close to 120% of GDP by 2014, up from about 80% GDP before the crisis.
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