A 28% increase, the largest since World War II.
Global debt reached a record level of 226 trillion dollars last year, or 256% of global gross domestic product (GDP), under the effect of the crisis caused by the pandemic, announced Wednesday the International Monetary Fund ( IMF)
"Government borrowing accounted for a little more than half of this increase", also reaching a record (99% of world GDP) while "the private debt of non-financial corporations and households also reached new highs », Detailed Vitor Gaspar and Paulo Medas, responsible for budgetary affairs of the IMF and Roberto Perrelli, economist of the Fund in a blog article.
Direct consequence of two major economic crises
Government debt alone now represents nearly 40% of total world debt, "the highest share since the mid-1960s", they specify.
The accumulation of public debt is the direct consequence of two major economic crises, the 2008 global financial crisis, then the Covid-19 pandemic.
In 2020, "the sharp increase in debt was justified by the need to protect people's lives, preserve jobs and avoid a wave of bankruptcies", they stress.
"If governments had not acted, the social and economic consequences would have been devastating."
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