LONDON Governments in the United States and Europe will not be able to significantly cut their debts in the next three years, a large majority of investors believe, according to a poll published on Monday.
Almost 90 percent of investors did not see European governments making significant progress in reducing their debts by 2016, the poll found.
Similarly, more than two thirds doubted President Barack Obama's administration could make a big difference to debt levels in the next three years, according to the survey published by Principal Global Investors and UK think tank CREATE-Research.
"They (governments) have already succeeded in their early intent: to stimulate demand for risky assets," said Professor Amin Rajan, chief executive of CREATE, in a report accompanying the survey. "Whether they will create a lasting 'wealth effect' that ramps up growth and jobs remains an open question."
Most of the investors saw no end to austerity in Europe and said governments were most likely to use spending cuts to address their debt problems in the next three years.
The U.S. government, meanwhile, was expected to rely on economic growth to deal with debt.
The survey polled more than 700 asset managers, pension plans, fund distributors and fund administrators across 29 countries, which together manage $27.4 trillion in assets.
Principal Global Investors is part of Principal Financial Group.
(Editing by David Holmes)