How The National Debt Affects Your Investments

How much does the national debt of a country affect the stock market? You’d be surprised. But first.

What is the Difference Between National Debt and Budget Deficit

They aren’t the same thing. The national debt is essentially IOUs incurred by a government that hasn’t been repaid yet. At the same time, a budget deficit results from a shortfall in government revenue compared to government spending, in addition to the outstanding debt incurred by the government.

How National Debt Affects the Stock Market

It’s a prevalent phenomenon in the post-covid world. Governments in the region have seen a financial impact due to the pandemic that required increased government spending to revitalise the economy and provide medical relief. This results in high-interest rates, cost of borrowing, and even inflation.

Find out how the national debt can affect your investments and why investors should be prudent about the rising national debt worldwide.

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