Debt sustainability and climate change

Climate change has both immediate and long-term consequences on the debt trajectories of developing countries. Their high physical vulnerability to global warming and the increase in natural disasters, combined with lower socio-economic resilience (food and agricultural insecurity, high population growth, lack of social safety nets and political instability), are putting a strain on public finances at a time when they already have little budgetary leeway.

Cabrillac B., Fabre C., Jacolin L. (2023) "Debt sustainability and climate change" FERDI Policy brief B249, May.

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