2024 Outlook : stable but difficult as debt

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      <subfield code="a">Our outlook for sovereign creditworthiness in 2024 is stable. Conditions will remain difficult for governments but will not deviate significantly from 2023. Interest rates will stay high in major economies to combat inflation, keeping GDP growth below potential. However, active use of policy will backstop economic activity. Governments face a delicate balance to achieve fiscal consolidation while tamping elevated social risks. Higher rates and weaker debt affordability will limit scope to reduce leverage, although debt burdens1 will fall slightly for many governments</subfield>
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