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It’s time to stop whining about sovereign debt levels. So what if your country’s debt 100% -150% of GDP?These statistics sound scary now, but in the future they’re likely to be quaint according to Standard & Poor’s via Bloomberg.
The ratings firm’s latest forecast puts the median global debt to GDP, for 49 major economies, at a mere 245% of GDP by 2050. Just back in 2007 they had expected this figure to be 150%, so it’s fair to say they’ve revised up their estimate a bit.
The firm has described sovereign debt growth as ‘explosive’. Or implosive.
“The erosion in sovereign ratings would start in 2015, when hypothetical ratings on a number of highly rated sovereigns come under pressure,” says S&P.