LONDON—Governments will benefit from the biggest inflation-driven drop in debt ratios in over 20 years, credit rating firm Fitch said on Wednesday, estimating it will slice around 5 percentage points off U.S. debt-to-GDP and 2 percentage points globally.
The effects on government debt ratios from 2022 inflation vary by region, with the smallest impact being forecast for the Middle East & North Africa, and the largest impact in sub-Saharan Africa.
