Total global debt in 2020 rose by $ 24 trillion to more than $ 280 trillion. This is 35 pp more relative to world GDP – up to 335% of GDP.
These figures were published by analysts at the Institute of International Finance (IIF).
For comparison: in 2008, the ratio of global debt to GDP increased by 10 percentage points, in 2009 – by 15 percentage points.
Reality
As IIF analysts note, the cumulative global debt accumulated in the first year of the pandemic is significantly higher than during the 2008-2009 global financial crisis.
Aggregate government debt has increased to 105% of global GDP, up from 88% of GDP in 2019.
The debt of developed countries in the context of the coronavirus crisis rose by a total of $ 10.7 trillion. Last year, only Switzerland became a country where there was a decrease in public debt in relation to GDP.
The total debt of private non-financial companies rose to 165% of GDP from 124% of GDP a year earlier.
Expectations The Institute estimates the global public debt will rise by another $ 10 trillion in 2021.
Vaccinations against covid-19 are progressing at different rates from country to country, and difficulties in registering and introducing vaccines can hold back economies. This will also contribute to the accumulation of additional debt, IIF experts say.
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