Asset Holdings of the Public Sector

The rise in government debt has to be set against a steady accumulation of assets by the public sector. A comparison between these trends shows that only for central government liabilities grow faster than net acquisitions of wealth. States, local communities and other public institutions have increased their net asset holdings considerably over the last two decades. This goes not only for physical capital, but also for financial wealth (outstanding loans, equities, securities) and reserves. Public sector liquidity has risen markedly during the last couple of years.