Graph 4 G7 – Net Public Debt Per cent of GDP %  %  80  80  40  40  0 1984  1989  1994  1999  2004  2009  0 2014  Source: IMF  Over coming years, many governments will need to take significant steps to improve their public finances.
The flexibility that they have to determine the timing and size of these steps is limited by the fact that they went into the current downturn with already high levels of debt. As a result of the poor starting points, many are now treading a fairly narrow path.