Fiscal policy needs to prevent unsustainable debt increases

Public debt to GDP ratios today stand at high levels in historical perspective and governments face mounting fiscal pressures, stemming from multiple sources, including ageing societies and the need to tackle climate change. Stylised mechanical projections show that in the absence of government action the level of public debt to GDP is set to continue to increase to high levels.

See also: OECD Economic Outlook, November 2023