Global rebalancing needed to replace U.S. demand: IMF

WASHINGTON (Reuters) – The global economy needs to be rebalanced to ensure sources of demand as the United States tightens its budget, the International Monetary Fund’s chief economist said on Monday.

“We truly believe that there cannot be strong, sustained, balanced world growth without rebalancing,” IMF chief economist Olivier Blanchard told a news conference. “If the U.S. is going to do the fiscal consolidation of the size that it has to do then demand has to come from elsewhere.”

(Reporting by Tim Ahmann; Editing by James Dalgleish)

Global rebalancing needed to replace U.S. demand: IMF