Record government debt and soaring borrowing costs are set to put a significant strain on taxpayers and public services, but these challenging market conditions present opportunities for investors.
According to the Janus Henderson's Sovereign Debt index, published today (4 May), global government debt rose 7.6% to a record $66.2trn in 2022, while higher interest rates meant government borrowing costs jumped 20.9% at the fastest rate since 1984. The interest paid on sovereign debt reached a record $1.4trn last year and is set to double in the next three years. By 2025, the effective interest rate paid on government borrowing will rise from 2.2% in 2022 to 3.8%. This will cost an additional 1.2% of GDP, the firm said. British Business Bank plans 'sovereign growth fund' ambitions -...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
