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        The Tidal Wave of Global Debt: Causes and Consequences

        Simona M Mocuta
        Chief Economist
        Elliot Hentov, Ph.D.
        Head of Macro Policy Research
        Aditya Patel, CFA, CA
        Research Analyst, Investment Strategy & Research

        Global debt has surged at an unprecedented pace over the last four years, driven by aggressive deficit spending as governments scrambled to cushion the blow of the COVID-19 recession.

        Servicing this debt is becoming increasingly burdensome. In the US, for example, federal debt alone has risen by more than 50% since 2020, and interest costs now consume nearly 20% of federal revenues. The US isn’t alone. Across the globe, from Canada and the UK, to emerging markets, the concerns around fiscal sustainability are growing.

        Our Focus on Fiscal papers examine the profound implications this fiscal backdrop will have on economies and investors in the years to come. Higher interest rates, persistent inflationary pressures, and lower growth are some of the key risks to track. Forthcoming articles will explore global macroeconomic trends as well as provide country-specific spotlights.

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