The country’s public debt stock may further balloon and peak at 57.7 percent of total economic output by 2022, but this is justified by the need for massive stimulus during this prolonged coronavirus pandemic, think tank Fitch Solutions said.
In a June 10 research note, the UK-based research firm said disruptions from the pandemic would likely drag down government revenues in 2021 and jack up expenditures over the coming quarters.
As such, it expects the government’s fiscal deficit to remain high at 7.7 percent of gross domestic product (GDP) this year from 7.6 percent last year with higher spending on COVID-19 support measures. By 2022, the deficit is expected to ease to 6.5 perce…
Keep on reading: Public debt seen peaking at 58% of GDP