Fiscal Adjustments Ahead: A Graphical Look

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 |  Includes: DIA, EEM, EFA, EIS, EWA, EWC, EWG, EWH, EWK, EWL, EWO, EWP, EWQ, EWS, EWU, EWY, QQQ, SPY
by: Paul Kedrosky

The chart below shows the size of sovereign fiscal adjustments ahead around the world, based on the latest IMF figures, assuming countries want to stabilize debt as a percentage of GDP.

The numbers represent required contraction in domestic spending (in the cyclically adjusted primary balance) between 2010 and 2030 as a percentage of GDP.

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