5.5 Consequences of global debt

Economic Pressure: High debt levels can lead to increased interest payments, reducing available resources for other public spending or investment.

Sovereign Debt Crises: Countries with high debt levels may face difficulties in servicing their debt, leading to economic crises and potential defaults.

Social Inequality

Refers to the unequal distribution of wealth, income, and opportunities within a society. It can lead to disparities in living standards and access to resources.