"... Remarkable declines in national incomes, large financial rescue programmes and expansionary fiscal policies in the wake of the financial crisis have led to a dramatic deterioration of fiscal positions in industrial economies (Graph V.1). The aggregate public debt of the advanced economies is projected to rise from 76% of GDP in 2007 to more than 100% in 2011 – a record high in recent decades. Moreover, the full cost of cleaning up the balance sheets of financial institutions – particularly against the backdrop of their continued high vulnerability to adverse shocks – is not yet known. And beyond 2011, many industrial countries face the large, rising pension and health costs associated with their ageing populations. Unless tackled effectively and in a timely manner, such costs could lead to ever increasing deficits and debt levels..."
BIS Annual Report 2010