A recent report by Standard & Poor's showed that global corporate debt estimates are about $270 trillion, representing about double the global GDP. These debts have been rising steadily since the 2008 global financial crisis and have increased especially during the COVID-19 pandemic, as companies have resorted to borrowing to finance their operations.
High global corporate debt is a major concern for the global economy, and if companies cannot repay their debts, it could lead to a wave of bankruptcies that could lead to an economic recession. The years leading up to the pandemic, with the era of massive monetary easing in the world, were an open door to increase the volume of corporate debt at low interest.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
