KEJI - Update On Fiscal Policy - The 'Other' Policy To Watch

2024-05-14 10:10:00 ET

Summary

• Demographic trends are elevating entitlement spending, and higher spending on infrastructure and other pandemic-era priorities has kept overall government outlays above pre-pandemic levels.
• Incremental deficit change is what influences growth rates, so a stable deficit for the next several years wouldn’t meaningfully impact GDP growth.
• Debt distress, delays in sovereign-default processes and debt dispersion have driven the narrative in emerging markets over the past few years.

By Eric Winograd, Sandra Rhouma, & Adriaan du Toit

Lasting fiscal deficits can exact a cost. Here’s how the situation is shaping up for the world’s economies....

For further details see: