Trillions in U.S net worth vulnerable to recession: IMF

A severe recession would slash U.S public wealth by about USD 5 trillion, causing vastly more damage to Washington's finances than just an increase in debt and deficits, the IMF has warned.

Yet governments around the world, many of which face similar dangers, do not clearly publicise their overall net worths, the International Monetary Fund said in a new report on Tuesday.

This creates a potential blind spot for policymakers who could use this knowledge to head off economic risks, it said.

The global crisis lender, which in Indonesia this week is staging its annual meetings with the World Bank, cut its outlook for global GDP on Monday by two tenths to 3.7 per cent through next year.

The fund pointed to rising trade tensions as a cause for worry and also predicted slower growth in the United States next year and beyond.

(Agencies)