>While there was “no immediate risk” in the $30 trillion U.S. Treasury market, long-term projections suggested U.S. government debt increasingly looked to be on an “unsustainable path”, he said, whereas debt ratios for the euro zone and Japan were now edging down.
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>Looking at key debt ratios, global debt stood at 305% of world economic output, broadly stable where it had been since 2023. However, debt ratios followed a similar pattern as debt levels – trending lower in mature markets and rising steadily in emerging economies.
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>The IIF predicted that structural pressures – including aging populations, rising spending on defense, energy security and diversification, cybersecurity and AI-related capital expenditure – would push both government and corporate debt levels higher over the medium- to long-term.
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Some bits I found interesting…
>While there was “no immediate risk” in the $30 trillion U.S. Treasury market, long-term projections suggested U.S. government debt increasingly looked to be on an “unsustainable path”, he said, whereas debt ratios for the euro zone and Japan were now edging down.
…
>Looking at key debt ratios, global debt stood at 305% of world economic output, broadly stable where it had been since 2023. However, debt ratios followed a similar pattern as debt levels – trending lower in mature markets and rising steadily in emerging economies.
…
>The IIF predicted that structural pressures – including aging populations, rising spending on defense, energy security and diversification, cybersecurity and AI-related capital expenditure – would push both government and corporate debt levels higher over the medium- to long-term.