Ageing populations ‘already hitting’ governments’ credit ratings
Financial Times
23-05-17 04:19
Global public finances are being hit by an ageing population with ratings agencies warning that higher pension and health care costs are rising along with recent interest rate hikes. Moody’s, S&P and Fitch have all warned that ongoing issues with demographics are already impacting government credit ratings with little hope for change unless there are sweeping reforms. These downgrades could lead to a vicious circle of increased fiscal burdens and a rise in borrowing costs.