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Pandemic’s $16 Trillion Bill Will Come Due as Debt Surges: Fitch

Aug. 19, 2021, 9:00 PM

A blowout in government borrowing since the pandemic began will ultimately require spending cuts and higher taxes to get public finances back on track.

That’s a lesson from economic history highlighted by James McCormack, Fitch’s global head of sovereign ratings, who said that even if austerity is not on the agenda right now, the bill to pay for the pandemic will come due.

Governments around the world have rolled out about $16 trillion worth of fiscal measures to prevent economic collapse during the pandemic, according to the International Monetary Fund, helping to drive the recovery but also leaving war-time ...