By Ann Saphir Jackson Hole, Wyoming (Reuters) - The steep jump in public debt loads over the past decade and a half, as governments borrowed large ...
STORY CONTINUES BELOW THESE SALTWIRE VIDEOSJackson Hole, Wyoming - The steep jump in public debt loads over the past decade and a half, as governments borrowed large amounts of money to battle the Global Financial Crisis and the fallout from the COVID-19 pandemic, is probably irreversible.
Since 2007, worldwide public debt has ballooned from 40% to 60% of GDP, on average, with debt-to-GDP ratios even higher in the advanced countries. That includes the United States, the world's biggest economy, where government debt is now more than double the nation's yearly economic output. U.S. debt was about 70% of GDP 15 years ago.
A sharp rise in interest rates from historically low levels is adding to the cost of debt service, while political divisions are making budget surpluses difficult to achieve and more so to sustain. "High public debts are here to stay," they wrote."Like it or not, then, governments are going to have to live with high inherited debts."
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