National debt crisis will be averted by governments mobilizing and encouraging private wealth, says UBS

Overview

According to UBS, governments can avoid an impending debt crisis by activating private wealth to support budget gaps and strengthen fiscal stability. The financial institution argues that mobilizing private capital is not a new idea but a tested strategy historically used to stabilize public finances.

Government Strategies

UBS experts note that public authorities have often relied on private assets in times of fiscal pressure.

“Governments have long mobilized private wealth to support public finances. There are several approaches,” said the UBS chief economist.

Among the tools suggested are voluntary investment programs, tax incentives for domestic capital allocation, and public-private partnership models to fund infrastructure or social initiatives.

Financial Stability Outlook

By inviting private investors to participate in national projects, governments may reduce the need for excessive borrowing and limit the growth of public debt. UBS emphasizes that such collaboration between the private and public sectors can create new sources of liquidity and safeguard against fiscal instability.

Summary

UBS expects global governments to lean on private capital cooperation as a practical measure for averting national debt crises and maintaining long-term economic resilience.

Author’s summary: UBS believes coordinated efforts between the public sector and private investors will help countries stabilize public debt and sustain economic confidence.

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Fortune on MSN Fortune on MSN — 2025-11-29

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