Government debt reached a record $ 88 trillion
News_Code: 355493 10/18/2021 9:42:42 AM
Government debt reached a record $ 88 trillion
The International Monetary Fund predicts that government debt accounts for 97.8% of world GDP in 2021.

According to Rashatoudi, the International Monetary Fund estimates that government debt accounts for 97.8% of world GDP in 2021.

That's down 0.8 percent from a year ago, but it is still at its highest level due to unprecedented financial assistance to combat the Corona epidemic crisis.

According to the International Monetary Fund, the debt of governments worldwide is currently $ 88 trillion, but is projected to decline by about 1% compared to world GDP in 2021 and 2022 and then stabilize to be around 97%.

"Debts are expected to remain steadily higher than forecast before the epidemic," the International Monetary Fund said in a report. In advanced economies, it is projected to increase by approximately 20% by 2026.

According to preliminary estimates, the global debt of governments, non-financial corporations and households reached $ 226 trillion in 2020, an increase of $ 27 trillion compared to 2019.

This is the largest increase recorded, and way more than $ 20 trillion in total debt recorded during the two years of the global financial crisis in 2008 and 2009.

According to the report, advanced economies and China accounted for more than 90% of world debt in 2020, while emerging markets and developing and low-income countries accounted for only about 7%.

The International Monetary Fund also predicts that 65 to 75 million more people will be living below the poverty line compared to the end of 2021.