What are the consequences of failing to achieve fiscal debt sustainability?

Failing to achieve fiscal debt sustainability can have severe consequences for a country's economy. This can lead to higher borrowing costs, reduced access to credit, and a decline in investor confidence. As a result, the government may struggle to meet its debt obligations, leading to the possibility of default. Additionally, high levels of debt can crowd out crucial public investments, exacerbate income inequality, and hinder long-term economic growth. Ultimately, failing to achieve fiscal debt sustainability can have far-reaching negative effects on the overall well-being and stability of a country.

This mind map was published on 21 February 2024 and has been viewed 120 times.