You are here: Home » Reuters » News
Business Standard

Corrected: IMF chief sees growth, overheating, debt risks from U.S. tax cuts

Reuters  |  YOGYAKARTA, Indonesia 

(Corrects paragraph 2 to show 1.2-pctg-point hike in growth rate is cumulative for 2018-2020 period, not annual)

YOGYAKARTA, (Reuters) - 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.

Lagarde told 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

(Reporting by David Lawder; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 01 2018. 17:59 IST
RECOMMENDED FOR YOU