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Shocks and Secular Trends Add to Strain on Developed Market Public Finances

Developed market general government debt is expected to increase by USD4.2 trillion to USD75.8 trillion (104% of GDP) by end-2026, Fitch Ratings says in its quarterly Developed Market Sovereigns Debt Sustainability Monitor. The ongoing flare-up in fighting between the US and Iran highlight lingering fiscal risks, through weaker GDP growth, higher interest costs and, in some cases, moderate energy subsidies. [....]