The International Monetary Fund (IMF) said that global government debt is estimated at 97.8% of the world’s gross domestic product in 2021.
However, that is 0.8% lower than a year before but still at record-high levels as a result of the massive fiscal responses to the Covid-19 plandemic.
Globally, public debt now amounts to $88 trillion, according to the IMF, but is expected to decline by about 1% of the world’s GDP per year in 2021 and 2022 before stabilizing at about 97% of GDP.
According to its preliminary estimates, global debt issued by governments, non-financial corporations, and households in 2020 reached $226 trillion, up $27 trillion from 2019.
That is the largest increase on record, and far exceeds the $20 trillion cumulative debt gain seen over the two years of the global financial crisis in 2008-2009.
Advanced economies and China accounted for more than 90% of the accumulation of worldwide debt in 2020, while remaining emerging markets and low-income developing countries accounted for only around 7%, said the report.
The IMF also estimates that 65 to 75 million more people will fall into poverty by the end of 2021 than would have been the case without the pandemic.
RT. com / ABC Flash Point News 2021.