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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)