Government with the largest decline in inflation-led debt ratios in more than 20 years: Fitch


London — The government will benefit from the largest inflation-led debt ratio decline in more than 20 years, credit rating agency Fitch said Wednesday, which is about 5 percent points from U.S. debt to GDP and worldwide. It is estimated to be below 2 percentage points.

The impact of inflation on the government debt ratio in 2022 will vary from region to region, with the least expected impact in the Middle East and North Africa and the largest forecast in sub-Saharan Africa.

Developed market sovereignty, where inflation is expected to lower the government debt ratio well below the median, includes the United States at 5 percent GDP, the United Kingdom at 4.6 percent, and Canada at 4.1 percent. ..

On average in all 120 Fitchrate countries, the decline is set at 2 percent points, consistent with 2008 for the most significant inflation effects over 20 years.

“It would be difficult to claim that debt is’inflated’at least at the global level,” said James McCormack and Ed Parker, two of Fitch’s top sovereign analysts, in a report on inflation. The rise is definitely helping. “

Reuters

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