Large Public Debts and Confidence Crises
Public debt has surged in many countries. That is worrisome. The IMF Fiscal Monitor report published in April 2024 makes for dire reading. In 2023, the public debt-to-GDP ratio in advanced economies was 111%. In emerging economies, it was 68%. In both cases, further increases are projected before the end of the decade. In this Macro Flash Note, EFG Chief economist Stefan Gerlach argues that investors in public debt need to keep the risks in mind.
