Latest news with #Kozack
Japan Times
25-07-2025
- Business
- Japan Times
IMF advises Japan to avoid broad tax cuts and handouts
Japan should avoid broad tax cuts and cash handouts, as they could worsen the country's already precarious fiscal conditions, International Monetary Fund spokesperson Julie Kozack said Thursday. "Our advice to Japan is that, given this limited fiscal space, it's essential that ... any fiscal response to shocks is both temporary and also targeted," Kozack told a regular news conference in Washington. "Generalized subsidies and tax cuts, in our view, should be avoided." The suggestion came after Sunday's election in the House of Councilors, the upper chamber of parliament, resulted in a disastrous loss for the ruling bloc, likely increasing pressure for greater fiscal spending. Tackling inflation was a major campaign issue in the Upper House race. The ruling Liberal Democratic Party and its junior coalition partner, Komeito, pledged to give cash handouts while opposition parties called for reducing or abolishing the consumption tax. Japan's long-term interest rates rose in interdealer trading after the election due to worries about fiscal expansion. The nation's outstanding debt is the highest among major economies, standing at more than double the country's gross domestic product. "Japan has limited fiscal space ... because of high public debt," Kozack said, recommending that any fiscal stimulus measures to address economic shocks should be temporary and targeted at vulnerable households and companies. Broad tax cuts and benefits are "not an efficient use of Japan's limited fiscal space," the spokesperson added. She said Japan should urgently develop a "clear fiscal consolidation plan," considering that Japan's outstanding debt will likely increase further due to growing interest payments on Japanese government bonds amid rising interest rates, and that social security costs will inevitably rise due to the aging population.
Al Etihad
24-07-2025
- Business
- Al Etihad
UAE growth to remain strong at over 4%, says IMF
24 July 2025 22:35 A. SREENIVASA REDDY (ABU DHABI)The UAE's economic growth is expected to remain healthy at over 4% in 2025, despite geopolitical tensions in the region, according to the International Monetary Fund (IMF). 'We're seeing robust growth in non-hydrocarbon activity, driven by tourism, construction, public spending, and financial services,' IMF spokesperson Julie Kozack told Aletihad during an online press briefing. She added that oil production in the UAE is increasing faster than anticipated, following the reversal of earlier output cuts. 'The UAE economy has shown resilience in the face of lower oil prices and increased price volatility this year,' Kozack to the broader region, she said GCC growth is estimated to have rebounded to 1.4% in 2024, despite reduced oil output. 'Our projection in the April World Economic Outlook was that GCC growth would rise further to 3.3% in 2025.'She added that non-hydrocarbon growth across the GCC is also expected to remain strong, supported by rapid investment, construction, and ongoing reforms aimed at diversifying regional economies. She affirmed that inflation in the GCC region remained under control. Kozack advised the GCC governments to maintain fiscal prudence while continuing with structural reforms to support long-term economic diversification.
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Business Standard
03-07-2025
- Business
- Business Standard
IMF says US tax, spending bill runs counter to deficit-cutting advice
The massive US tax and spending bill slated for a final vote in Congress runs counter to the International Monetary Fund's recommendations that Washington reduce fiscal deficits over the medium term, IMF spokesperson Julie Kozack said on Thursday. Kozack told a regular news briefing that there was a broad consensus that the Republican bill will add to US fiscal deficits, while the US needs to start a fiscal consolidation. "From the IMF side, we have been consistent in saying that the US will need to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path," Kozack said. "Of course, the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time." Kozack said that there were many policy options for the US to reduce deficits and debt, adding: "It is, of course, important to build consensus within the United States about how it will address its these chronic fiscal deficits." In recent years, the IMF has recommended that the US raise taxes, including on middle income earners, to close fiscal deficits. The Republican tax bill extends 2017 tax cuts and adds new tax breaks for many Americans. The IMF advice is at odds with the views of US Treasury Secretary Scott Bessent, who has consistently said that he disagrees with traditional budget forecasts and believes that the so-called "One Big Beautiful Bill Act" will spur additional US economic growth that will boost revenues. The United States is the biggest shareholder of the IMF. Bessent, who manages the US stake, has criticized the Fund for straying too far from its core economic stability and surveillance missions. Kozack said that the IMF was examining details of the US legislation and the likely impact on the economy, and will incorporate its analysis into the late July update of its World Economic Outlook global growth forecasts. The forecasts also will assess the state of play on US tariffs, after President Donald Trump's July 9 deadline to subject many countries to sharply higher duties unless they agree trade deals.
Yahoo
03-07-2025
- Business
- Yahoo
IMF says US tax, spending bill runs counter to deficit-cutting advice
WASHINGTON (Reuters) -The massive U.S. tax and spending bill slated for a final vote in Congress runs counter to the International Monetary Fund's recommendations that Washington reduce fiscal deficits over the medium term, IMF spokesperson Julie Kozack said on Thursday. Kozack told a regular news briefing that there was a broad consensus that the Republican fiscal policy bill will add to U.S. fiscal deficits, but the U.S. needs to start a fiscal consolidation. "From the IMF side, we have been consistent in saying that the US will need to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path," Kozack said. "Of course, the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time." Sign in to access your portfolio
Al-Ahram Weekly
03-07-2025
- Business
- Al-Ahram Weekly
IMF to complete 5th, 6th reviews of Egypt loan programme in September - Economy
The International Monetary Fund (IMF) has announced that it will complete the fifth and sixth reviews of Egypt's Extended Fund Facility (EFF) programme by September, citing the need for more time to finalize key policy measures, according to Julie Kozack, the director of the IMF's Communications Department. The key measures to be finalized include those related to reducing the state's role in the economy and enhancing private sector participation, Kozack clarified. Once the fifth and sixth reviews are completed in September, Egypt will be eligible to receive two tranches, worth $2.4 billion, out of the total $8 billion loan. Kozack made these remarks on Thursday during a hybrid press briefing when asked by Ahram Online about the possible outcomes of Monday's meeting. The decision follows a recent IMF mission visit to Cairo, from 6 to 18 May, during which discussions with Egyptian authorities were described as productive. However, Kozack affirmed that more work is needed to ensure the programme's core objectives are met. 'The discussions suggest that more time is needed to finalize key policy measures, particularly related to the state's role in the economy,' Kozack said during the press briefing. 'For that reason, the fifth and sixth reviews under the EFF will be combined and discussed together in the fall,' she added. Moreover, Kozack asserted that Egypt has made notable progress, including a decline in inflation and an increase in foreign exchange reserves. However, she emphasized the importance of deepening structural reforms to safeguard macroeconomic stability and strengthen the country's resilience to external shocks. Central to those reforms are the advancement of the state ownership policy and the asset diversification programme, key elements that aim to reduce the state's economic footprint and create space for private-sector-led growth. 'These steps are critical to leveling the playing field and improving the business environment,' she noted. Kozack further affirmed the IMF's strong commitment to Egypt's economic reform agenda. She clarified that discussions are ongoing regarding the country's financing needs and the potential size of the disbursement under the combined review, saying it would be premature to speculate on the final figures at this stage. Additionally, she stated that the first review of the Resilience and Sustainability Facility (RSF) financing, which was approved earlier this year, will be aligned with the sixth review of the EFF programme. The IMF's EFF arrangement with Egypt was initially approved in December 2022 and expanded in 2024 to a total of $8 billion. The programme aims to restore macroeconomic stability, advance structural reforms, and enhance social protection in the face of external economic pressures. Follow us on: Facebook Instagram Whatsapp Short link:
