Soaring Global Debt Levels Raise Fears of Another Financial Crisis

Record high global debt levels are raising concerns about another financial crisis, especially in developed economies like the U.S., Italy, and the U.K.

Investors are demanding higher returns on long-term bonds, and economists warn governments must deliver credible fiscal plans.

Fractious politics and lack of consensus on budgets and taxes increase risks of policy missteps that could trigger market routs.

Longer-term trends like ageing populations and climate change will drive up spending needs, challenging debt sustainability.

To avoid crisis, experts urge efficient spending, reforms, growth plans, some tax hikes, and credible medium-term budget frameworks.