Overall, advanced economy deficits are forecast to decline by about ¾ percentage point of GDP this year and about 1 percent of GDP next year in both headline and cyclically adjusted terms, a rate that strikes a compromise between restoring fiscal sustainability and supporting growth.
While the average debt-to-GDP ratio among advanced economies is projected to continue to rise over the next two years, surpassing 110 percent of GDP on average in 2013, debt ratios will by then have peaked in several advanced economies (Figure 3). Already this year, about one-third of advanced economies will have declining debt ratios, although debt ratios will still exceed their 2007 levels in almost all cases.
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While the average debt-to-GDP ratio among advanced economies is projected to continue to rise over the next two years, surpassing 110 percent of GDP on average in 2013, debt ratios will by then have peaked in several advanced economies (Figure 3). Already this year, about one-third of advanced economies will have declining debt ratios, although debt ratios will still exceed their 2007 levels in almost all cases.
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