The Organization for Economic Cooperation and Development (OECD) has released a report expressing concerns about the potential dangers stemming from global imbalances. The report highlights the persistent and substantial U.S. current account deficit as a primary source of risk.

The OECD emphasizes that a cooperative approach to policy adjustments is necessary to mitigate these risks effectively. Specifically, the organization recommends fiscal consolidation in the United States to address its deficit. In addition, the OECD calls for structural reforms in other major economies to boost domestic demand and reduce reliance on exports.

The report suggests that without coordinated policy action, these global imbalances could lead to increased financial market volatility and potentially hinder global economic growth.