fxstreet.com 11 Feb, 2021 16:45 am

Debt ratio to head down over the next decade – CE

Debt ratio to head down over the next decade – CE
The COVID-19 crisis has led to something of a paradox: Italy’s public debt ratio has risen, but the probability of default has fallen. That’s largely

The COVID-19 crisis has led to something of a paradox: Italy’s public debt ratio has risen, but the probability of default has fallen.As a result, economists at Capital Economics now think Italy’s debt ratio is likely to decline over the next decade.” “Italy’s debt ratio will trend down over the next decade, rather than keep rising.After all, the debt ratio will remain very high and, unlike Japan for example, Italy does not control its own monetary policy.

” “The risk to the public finances is still higher in Italy than elsewhere in the eurozone.The second is that there is another major economic crisis over the next few years which puts additional strain on the public finances.

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