"The International Monetary Fund on Monday urged the US to begin addressing its yawning budget deficit this year rather than putting off the pain and missing G20 fiscal targets.
In its semi-annual measure of global economic health, the IMF said the US will likely grow more slowly than originally forecast in January -- 2.75 percent instead of 3.0 percent.
It said that slack domestic demand, high unemployment and still-depressed housing prices will continue to dog the world's largest economy, and that the huge government deficit will limit its ability to address those problems.
"Even so, the IMF, echoing the ongoing battle in the US Congress over taxes and government spending, urged Washington not to try to borrow and spend its way back to economic health.
With a federal budget gap estimated at 10.8 percent this year, it said Washington will find it difficult to achieve its Group of 20 goal of halving the deficit between 2010 and 2013.
'The United States stands out as the only large advanced economy where the cyclically adjusted fiscal deficit is expected to increase in 2011 compared with 2010 despite the ongoing economic recovery,' the Fund said in the World Economic Outlook.
"Addressing this urgently' is important to avoid excessive US borrowing destabilizing global bond markets, it said."
Read the full story: IMF urges US to address debt now