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        Fiscal Policy Insights

        Fiscal (In)Stability

        Global debt has surged at an unprecedented pace since the onset of the pandemic, raising concerns around the fiscal sustainability of countries worldwide.

        What are the major implications this fiscal backdrop will have for economies and investors in the coming years? Learn from our investment experts.

        The Trends to Watch

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        Simona Mocuta
        Chief Economist

        Video (2:04 min)

        Fiscal Debt in Motion

        Peak Negative Yielding-Bonds $17trn

        in 2020

        Surging US Public Debt 52%

        increase since January 2020

        Projected US Fed Interest Cost 20%

        as a share of government revenues

        Global Hot Spots

        Debt Levels Across the Globe

        heat map

        Central Government Debt to GDP

        Central Government Debt

        Why Rising Fiscal Debt Matters

        Higher Debt Service Costs

        Higher interest costs reduce a government’s ability to make important public investments that can fuel economic growth areas such as education and infrastructure. A country saddled with debt will have less resources to invest for the future.

        Inflationary Pressure

        High and growing levels of public debt are likely to cause higher inflation as the increasing burden of debt and deficit financing raises political pressure to continue pursuing inflationary policy.

        Lower Growth

        Rising debt burdens can lead to less investment by businesses which results in curbing economic growth. Fiscal policy is expected to become a mild drag on economic performance over the medium term across many economies.

        Insights

        UK Autumn Budget Signals Fiscal Expansion

        The UK announced its Autumn Budget, pitting the political priorities of a new Labour government against narrow fiscal space. We examine what this means for markets and investors.

        November 15, 2024

        US Public Debt at Record High

        Since the start of the Pandemic in 2020, the US has added approximately $11 trillion of public debt to its balance sheet.

        November 8, 2024 3 min read

        France’s Fiscal Fragility Strains the Eurozone

        In the second article of our Focus on Fiscal series, we examine the challenges facing the euro area, and France in particular, and consider what this fiscal landscape in the euro area means for investors.

        November 6, 2024

        The Tidal Wave of Global Debt: Causes and Consequences

        Global debt has soared post-COVID, straining economies. Our Focus on Fiscal series explores its impact on growth, inflation, and investment risks worldwide.

        October 31, 2024

        Fixed Income Reimagined

        A changing world needs new innovative solutions. Learn how to strengthen your fixed income core.

        Learn More

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