The US was the target of pointed criticism from the International Monetary Fund last week, with the organisation calling out everything from Washington's trade policy to its deficits.

In its annual evaluation, the IMF touted a "remarkable performance" in the world's largest economy and expects further growth to come.

However, some issues are becoming too pressing to ignore, it said.

"The fiscal deficit is too large, creating a sustained upward trajectory for the public debt-GDP ratio," the summary said. "The ongoing expansion of trade restrictions and insufficient progress in addressing the vulnerabilities highlighted by the 2023 bank failures both pose important downside risks."

Chronic deficits are leading toward a debt-to-GDP ratio of 140 percent by 2032, IMF said, a situation that needs to be addressed urgently. By the US' own estimates, the national debt will balloon to $56.9 trillion by 2034, a steep increase from earlier projections.

In an era of higher interest rates, alarms have started ringing over fiscal stability as Washington will need to finance its debts at elevated borrowing costs. Some of Wall Street's heaviest hitters have issued warnings of eventual fallout.

To counter this, the IMF pushed for policymakers to find efficiencies in discretionary spending and to raise indirect and income taxes -- including on those earning under US$400 000 a year.

What's more, partisan debt ceiling standoffs need to end, it said. The worst instance occurred 2023, when Republicans and Democrats brought the US close to default over funding disagreements.- Business Insider Africa