S&P warns of public financing troubles ahead
International loan rating institute Standard & Poor’s issued its annual analysis, in which the company warns the most developed countries of the world, including Hungary, of serious public financing problems over the next 50 years.
These societies are getting old and government expenses due to the old society will rapidly increase from around 2015. These countries will need more loans and the proportion of loans to the GDP may be as high as 12% by 2050. Also net state debts could rise to a whopping 156% of the GDP that would collapse economies around 2050. Standard & Poor’s emphasized they do not forecast the future, just make a simulation of potential future events. According to the simulation, Hungary may have a 306% net state debt ratio by 2050. (Gazdasági Rádió)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.