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....
Read the full article on Seeking Alpha
For further details see:
Update On Fiscal Policy - The 'Other' Policy To Watch