Figure 8  Public and private debt (per cent of GDP)  300  Private  Public  300  250  250  200  200  150  150  100  100  50  50  0  IT  FR DE NL ES Euro area  IT  FR DE NL ES Euro area  0  Sources: Based on data from Banca d’Italia, ECB, European Commission, Eurostat and Istat.
Finally, investors require higher returns for increased uncertainty, which means elevated longterm real interest rates. In addition, higher inflation can negatively impact on competitiveness. If inflation in South Africa is above that of our trading partners or export rivals, then the production costs of our exports will be relatively greater, and as a result we will be less competitive in global markets.