COVID-19: “Global public debt near 100% of GDP,” says IMF

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The international Monetary Fund (IMF) has declared global public debt to be near 100% of GDP.

 

Ms Kristalina Georgieva, Managing Director of the IMF, disclosed this in a virtual #IMF Seminar, titled, “Averting a COVID-19 Debt Trap”.

 

The panelists sought to explore ways to contain debt risks through better debt architecture and transparency and how global co-operation can help.

 

Ms Georgieva expressed worry about developing countries falling into a #debttrap as they continue to struggle to vaccinate their populace against the coronavirus.

 

“…There are fears they will lag in years behind developed nations unless ‘we act fast to help them’. Good news for some will turn into bad news for others,” she added.

 

Africa

“170 million people will fall into poverty,” said Dr. Vera Songwe, Executive Secretary, UN Economic Commission for Africa @ECA_Official.

 

“Africa not only faces a huge risk of debt trap, but also a poverty trap,” she added.

 

Mohammed A. El-Erian, President, Queens’ College, Cambridge University, opined that growth is key to developing nations avoiding #COVID19 #debttrap:

 

“We need to focus on promoting growth and ensuring better burden sharing to construct a better timely and constructive rearrangements of debt obligations so that the debt overhang doesn’t crush us.

 

“We may face a lost decade to a set of countries in #Africa and #Asia,” he warned.

 

Amaka E. Nliam

 

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