Government Debt Has Declined But Don’t Celebrate Yet

Year
2023
Type(s)
Author(s)
M. Ayhan Kose, Franziska Ohnsorge, Kersten Stamm, and Naotaka Sugawara
Source
Brookings Institution Future Development blog, February 21, 2023
Url
https://www.brookings.edu/articles/government-debt-has-declined-but-dont-celebrate-yet/

Growth and inflation have unexpectedly helped lower government debt-to-GDP ratios in many countries since early 2021. However, government debt is still elevated and fragile in its composition, and the magic of growth and inflation is unlikely to last long. To reduce debt in a lasting manner, growth-boosting reforms and, in some countries, debt relief are needed.