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Global government debts increased last year and set a new record

Government debts rose last year to a new record, according to a report by the International Monetary Fund (IMF).

Global government debts increased last year and set a new record
Yazar: Tom Roberts

Yayınlanma: 29 Ocak 2021 21:56

Güncellenme: 3 Kasım 2024 11:36

Global government debts increased last year and set a new record

Government debts rose last year to a new record, according to a report by the International Monetary Fund (IMF). However, the fund warned that governments must continue to support economies and fund vaccination against COVID-19. "Politicians will need to find a balance between providing short-term support to ensure a solid recovery and keeping debt at a manageable level over the longer term," the IMF said in a report on public debt developments. Global fiscal stimulus reached almost $ 14 trillion (€ 11.58 trillion) last year. These spending to fight the corona crisis has increased the average global public debt to 98% of gross domestic product (GDP). In 2019, it was still below 84% of GDP. However, the economic downturn was slightly smaller than expected, so the debt development was slightly more positive than in the July forecast, when the IMF expected it to rise to 101% of GDP. The fund predicts an expansion of the global economy of 5.5% this year after a contraction of 3.5% in 2020. "Global cooperation in the production and general distribution of treatment and vaccines to all countries at low prices is crucial," said IMF officials. Vaccination according to the fund saves lives and ultimately also saves taxpayers' money. "The sooner this global pandemic ends, the faster the economies will return to normal and people will need less government support," they added.
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