The International Monetary Fund revealed that global debt has reached a record level of $226 trillion, or 256 percent of global GDP, bringing the increase to 28 percent, under the impact of the crisis caused by the Covid-19 epidemic, the highest since the Second World war.
According to the IMF, government borrowing represented just over half of this increase, and also reached a record level of 99 percent of global GDP, while private debt of non-financial corporations and households also reached new highs.
Government debt alone represents about 40 percent of total global debt, the largest share since the mid-1960s. The Fund indicated that the accumulation of public debt is the direct result of two major economic crises, namely the global financial crisis in 2008 and the Covid-19 pandemic. In 2020, the sharp increase in this debt was justified by the need to protect lives, preserve jobs and avoid a wave of bankruptcies, according to the International Monetary Fund, which explained that if governments did not act, the social and economic consequences would be devastating.
Source (Al-Arabiya.net Website, Edited)
