The IMF estimates that “government debt for advanced G-20 countries [will] reach 118 per cent of GDP on average by 2014”, compared with a pre-crisis level of about 78 per cent. 4 For 2010, the combined fiscal deficits of these countries is estimated at nearly 9 per cent of GDP.
This may allow us to increase rates more gradually as the data improve rather than face the prospect of a more abrupt increase in rates to catch up with market forces, which could be the outcome of a prolonged delay in our willingness to act. Conclusion In conclusion, I remain positive about the economic outlook.