Deficits are rising across the developed world as governments aggressively loosen their purse strings in response to the COVID-19 pandemic. But what are the ramifications of all this debt? Our K2 Advisors team weighs in on the longer-term unintended consequences for governments that maintain massively leveraged balance sheets for an extended period.
It is estimated global government debt will reach US$66 trillion by year-end, and debt to gross domestic product ((GDP)) will rise from 105% to 122%, a bigger increase than any seen during the global financial crisis ((GFC)).1 In the United States, for