Debt is projected to hit almost $1 trillion next financial year but the record low interest rates mean the cost of servicing it as a percentage of GDP will be almost half of that during the last recession of 1992.
The federal government will be paying $17.2 billion in interest payments this financial year and $17.6 billion in interest payments next financial year equating to just 0.9 per cent of GDP.
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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com
