A large share of the adjustment in external imbalances since the crisis has been cyclical, not structural According to the IMF, the US current account deficit is projected to reach about 3% of GDP in 2011, against surpluses of roughly 5% and 9% of GDP for China and oil exporters respectively. They are a source of tensions that could ultimately lead to protectionist pressures.
However, the euro area as a whole has a balanced current account position. Global fiscal imbalances remain significant, with a marked degree of heterogeneity between advanced and emerging economies. Consolidation efforts required to bring public finances to a sustainable path are a key priority for advanced countries. Efforts made to adjust these imbalances remain clearly insufficient.