Wednesday, October 13, 2021
An examination of the factors behind the expansion indicates that outsized balance sheets will persist and will pose a number of macroeconomic risks.
- Slower workforce growth will pressure GDP growth, trade growth and long-term interest rates, unless productivity gains can offset this.
- A record number of US business deaths and births in 2020 will affect productivity and have unpredictable impacts on the economy.
- Lower growth makes it harder to stabilise debt-to-GDP ratios, just as pension and health costs rise as populations age in major economies.