The latest reports issued by the Institute of International Finance showed that the global debt rose to a record level of $281 trillion in 2020, as governments expand spending to counter the repercussions of the Corona pandemic. According to the report, global debt increased by $24 trillion to 281 trillion in 2020 from 257 trillion in 2019.
The Institute of International Finance reveals that the world's debt today is equivalent to 355 percent of global gross domestic product by the end of 2020, an increase of 35 percentage points by the end of 2019. This annual increase in the volume of global debt is times the increase during the global financial crisis that began in 2008, and resulted in on the collapse of the mortgage market in the United States, and its impact spread to all parts of the world, as global debt increased by 10 percent in 2008 and 15 percent in 2009.
According to the new data, government debt increased to account for 105 percent of GDP in 2020, from 88 percent in 2019. The institute indicated that developed countries added 10.7 trillion dollars of government debt in addition to 10 trillion for other countries outside the Organization for Economic Cooperation and Development. Meanwhile, non-financial private sector debt increased to 165 percent of GDP in 2020, from 124 percent in 2019.
Source (Al-Arab-London based Newspaper, Edited)
