IMF warns rich nations to cut debt

Advanced economies face a herculean task to restore public debt to pre-crisis levels, and failure to do so will drive up borrowing costs and curb economic growth, the IMF warned on Friday.

If government debt is not reduced, potential growth in rich countries could decline by more than 0.5% annually, the International Monetary Fund said in its "Fiscal Monitor" report, which it launched last year.

In order to accomplish that, advanced economies will need to reverse deficits, which now average 4.9% of GDP, into an average surplus of 3.8% by 2020. (more)