Income Inequality

Prudent anchors, corrective mechanisms, and supportive institutions can help countries comply with their fiscal rules and commit to sound public finances

Decline in private lending offsets increase in public borrowing; notable differences persist across countries and income groups.

Greater debt transparency builds investor confidence, helps reduce borrowing costs, and strengthens debt sustainability—reducing the risk of shocks that can lead to a debt crisis

Fiscal Policy under mounting uncertainty means government budgets need resilience—particularly in countries whose economic weight makes them influence global trends

Amid heightened uncertainty, policymakers will need to deal with complex trade-offs between debt, slower growth, and new spending pressures

AI may widen inequality, but policymakers can counteract this with more effective social safety nets, reskilling programs, and regulations to promote ethical use of the technology