The coronavirus pandemic may have contributed to soaring public debt levels, leaving many governments facing fiscal pressures in the coming decades, the OECD warned in a new report Tuesday. According to the Organization for Economic Cooperation and Development’s economic outlook to 2060, governments worldwide must grapple with the costs of repaying debt generated to support businesses and individuals during the COVID-19 public health crisis. At the same time, officials will need to contend with ballooning costs for public services and aging populations. “Secular trends such as population aging and the rising relative price of services will keep adding pressure on government budgets,” the OECD said in the policy paper prepared by Yvan Guillemette and David Turner. “Fiscal pressure from these long-run trends dwarf that associated with servicing COVID-legacy public debt.” The Paris-based group stated that the pandemic led to record budget deficits. Study authors determined that the financial difficulties brought …
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