International Monetary Fund First, Deputy Managing Director, John Lipsky said in a speech today, at the China Development Forum in Beijing that All G7 countries, except Canada and Germany, will have debt-to-GDP ratios close to or more than 100 percent by 2014.
“This surge in government debt is occurring at a time when pressure from rising health and pension spending is building up,” Lipsky said.

Lipsky believes that already the advanced economies area facing sensitive challenges in dealing with high public debt, and undoing present incentive measures will not get nearer to close towards bringing deficits back to prudent levels.

He encouraged nations with advanced economies to prepare their financial dearth and levels of debt too practical levels by carrying out annuity and health entitlement reforms.

According to Lipsky, high public debt and fiscal deficits have already raised the risk premium for several countries, and could lead to higher interest rates and slower economic growth in the intermediate term.

He referred a latest study by IMF staff projecting constant increase in Chinese public expenditure which amounted to 1% of production on health, education and pensions could front to increase in house hold utilization amounting to more than 1% of gross domestic product.
And on how a financial strategy could help rebalance the global economy.