The International Monetary Fund (IMF) has announced that global public debt has reached 98% of GDP, as against the projected 84% at the close of year 2020 prior to the coronavirus pandemic.
Before the pandemic, the IMF projected global public debt to be 84% of GDP at the end of 2020; it has now reached 98% of GDP.
Vitor Gaspar, the IMF’s Director of Fiscal Affairs, elaborates on #IMFBlog: https://t.co/dlLjmi0E06 pic.twitter.com/SxccKenS3I
— IMF (@IMFNews) February 14, 2021
According to the IMF, “…Many countries have continued to support people and firms amid the resurgence of infections and renewed restrictions, while calibrating their responses to the evolving economic situation.
“…The global fiscal support reached nearly $14 trillion as of end-December 2020, up by about $2.2 trillion since October 2020.
“This support has varied across countries depending on the impact of the pandemic-related shocks and governments’ ability to borrow. In advanced economies, fiscal actions cover several years (exceeding 4 percent of GDP in 2021 and beyond).
“…In contrast, support in emerging markets and developing countries was frontloaded, with a large share of measures expiring. Together with economic contraction that has resulted in lower revenues, such support has led to a rise in public debt and deficits.
“Average public debt worldwide approached 98 percent of GDP at end-2020, compared with 84 percent projected pre-pandemic for the same date,” according to the IMF.
Amaka E. Nliam
