IMF "Global Public Debt to GDP Ratio at 98%... Up 14 Percentage Points from Previous Year"

[Image source= AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The International Monetary Fund (IMF) announced on the 28th (local time) that global public debt rose to about 98% of the world's Gross Domestic Product (GDP) last year due to the COVID-19 pandemic.

In 2019, the global public debt-to-GDP ratio was 84%. The IMF explained that the ratio rose to 101.5% of global GDP in July last year before slightly decreasing.

The increase in the debt ratio was due to governments increasing spending to overcome the economic crisis caused by the spread of COVID-19. The IMF stated that the total amount of funds spent by governments worldwide since the outbreak of COVID-19 reached $14 trillion. This is $2.2 trillion more than the amount recorded in October last year.

The IMF advised that although COVID-19 response policies place a significant burden on public finances, it is still necessary to continue fiscal support for the time being.

The IMF has revised upward its global economic growth forecast for this year to 5.5%, citing ongoing government efforts to combat COVID-19 and the progress of vaccination campaigns. However, it pointed out that the spread of variant viruses remains a variable.

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