OECD: World faces fiscal problems much worse than those from covid
|
In its latest policy paper, the Organisation for Economic Co-operation and Development (OECD) warned that the world is likely to face massive fiscal difficulties in the coming decades, worse than the bloated public debt seen during the Covid-19 pandemic.
Key takeaways
“According to its long-term scenario, a deceleration in large emerging economies, demographic change and slowing productivity gains will drag trend economic growth among the OECD’s 38 members and the Group-of-20 nations to 1.5% in 2060 from around 3% currently. “
“At the same time, states will face rising costs, particularly from pensions and health care.”
“To maintain public services and benefits while stabilizing debt in that environment, governments would have to raise revenues by nearly 8% of gross domestic product.”
“Secular trends such as population aging and the rising relative price of services will keep adding pressure on government budgets.”
“Fiscal pressure from these long-run trends dwarf that associated with servicing Covid-legacy public debt.”
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.