Overview

Abstract

Over the past two decades the fiscal positions of many advanced economies have deteriorated rather precipitously, leading to ever-growing levels of public debt (in absolute terms and as a share of GDP) and mounting concerns about debt sustainability. The ratio of gross government debt¹ to GDP for advanced economies was 60 per cent in 2000 and peaked at about 110 per cent in 2012.² In contrast, the public debt-to-GDP ratio for emerging market economies has remained stable since 2005, ranging from about 35 to 40 per cent (Figure 1.1).³