Countries battling high public debt must combine policies that support economic growth with lasting changes in government spending and taxation, a new study by the International Monetary Fund (IMF) concludes. A chapter in the IMF’s World Economic Outlook notes that public debt has surpassed 100 percent of GDP in Japan, the United States, and several European countries in recent years. This is especially worrying because of the low growth, persistent budget deficits, and looming liabilities due to aging populations in these countries. A result, particularly in Europe, has been ratings downgrades and higher borrowing costs.

Read Here – IMF