World Bank’s Malpass: U.S. debt limit standoff adds to global economic woes

[1/2] World Bank President David Malpass speaks during an interview with Reuters at the G7 Finance Ministers and Central Bank Governors’ meeting, in Niigata, Japan, May 12, 2023. REUTERS/Issei Kato

NIIGATA, Japan, May 12 (Reuters) – The risk of a U.S. payments default is adding to problems facing a slowing global economy, with rising interest rates and high debt levels already choking back investments needed to fuel greater output, World Bank President David Malpass said on Friday.

Group of Seven (G7) finance officials meeting in Japan discussed the “very high importance” of raising the U.S. debt limit and averting the negative repercussions of a potential default on U.S. government debt for the first time ever.

“Clearly, distress in the world’s biggest economy would be negative for everyone,” he told Reuters on the sidelines of the G7 meeting. “The repercussions would be bad to not get it done.”


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