Global debt will reach $ 200 trillion by the end of 2020
Standard & Poor's Global expects that global debt will reach $ 200 trillion, or 265 percent of global annual economic output, by the end of the year, but it does not expect a crisis soon.
The giant credit ratings agency said that global debt recorded an increase of 14 points as a percentage of global GDP, after it was inflated by the economic downturn caused by Covid and the excessive borrowing that governments, companies and families had to resort to.
The Standard & Poor's report said that the ratio of "global debt to GDP has been on the rise for several years. Simply the pandemic exacerbates the rise."
But despite the big jump and the expected wave of default in the coming year, the company does not expect a major crisis at this stage.
The report said: "The expected 14 percent increase in global debt to GDP in 2020 is unlikely to cause a debt crisis in the near term, by imposing a recovery in economies, distributing vaccines on a large scale, and moderating borrowing behavior."
And Standard & Poor's emphasized that, assuming that the global economy has recovered again after the pandemic, the global debt-to-GDP ratio should decline again to 256 percent by 2023.
Follow our latest local and sports news, and the latest political and economic developments via Google news