”As a result of the post-Covid debts surge and rising interest rates, the financial burden on governments is increasing. In the OECD, it has reached 3.3% of GDP, its highest level since 2010. For the European Union, the end of the period of cheap money coincides with a substantial increase in its borrowing requirements, partly linked to the need of rearmament. Public finances, already confronted with climate change and ageing populations, are under pressure and will not be able to meet all the challenges alone. Debt of advanced countries: the bill is getting heavier: There are some striking figures. By 2025, OECD[1] countries will be borrowing $17,000 billion (USD 17,000 bn), double the amount raised in 2019 and equivalent to the GDP of the Eurozone. Most of this money (almost 80%) will be used to refinance debt, which has exploded in the wake of the Covid-19 epidemic and is now approaching USD 60,000 bn, or 85% of advanced economies GDP.”
Morten W. Langer
