Government debt levels can be deceptiveFLOYD NORRIS
Public sector net debt amounted to 95.8 percent of gross domestic product in the United Kingdom during the 2024/25 financial year, or 90 percent when the Bank of England is excluded. UK government debt is at its highest levels since the early 1960s, due to a significant increase in borrowi...
Government debt of about 60 percent or less of GDP is not considered a problem. The government can make payments without strain and even has some room to borrow more. If debt levels reach 80-90 percent that may have negative effects on the economy. Debt above 120 percent of GDP is quite...
In this context, this paper attempts to investigate the impact of federal government debt levels on productivity growth for Malaysia by using annual time-series data over the period of 1970 to 2012. The ARDL Bounds Test Approach is used to estimate this relationship. The empirical results show ...
They whine that the government is spending too much, and that it is irresponsible to finance a big chunk of that spending with debt. They also make wonky arguments about an aging population and excessive levels of dependency. You dismiss these warnings. Well, we know what then happened. And...
Concerns about China's debt levels reaching a critical threshold and posing a systemic risk are overblown and the country's high debt-to-GDP ratio must be put into perspective, according to a recent research note from HSBC. However, it should be noted that local government' payment capability...
However, the country’s elevated levels of local debt—which are not captured in this metric—undercut its financial stability. Explore the Sustainable Trade Index This infographic was just a small subset of what the Sustainable Trade Index has to offer. To learn more, visit the Hinrich ...
Government debt may affect stock price crash risk for two main reasons. First, high government debt level may be associated with bad news hoarding. Indeed, higher levels of a country's government debt relative to GDP have been shown to be associated with an increase in interest rates (e.g....
Higher bond yields, a reflection of investor nerves about a country's economic prospects, increase the government's costs for borrowing money.Increased public spending is another major factor behind the increase in the country's debt load, as the government took steps to help the country emerge ...
due to ongoing fiscal spending and increased future spending toward a net zero economy. As debt levels rise, the government will need to issue more bonds, which should result in higher interest payments. Looking at the future projection from the OBR, debt is going up under all modelled ...