Washington: Due to the Covid and policies put in place to respond to it, the global debt has jumped to a new high of USD 226 trillion with India’s dues projected to rise to 90.6 per cent in 2021, the International Monetary Fund (IMF) said on Wednesday.
Advanced economies and China contributed more than 90 per cent to the accumulation of worldwide debt in 2020. The remaining emerging economies and low-income developing countries contributed only around seven per cent.
“Because of Covid, and of policies put in place to respond to it, debt levels increased fast and reached high levels. High and rising levels of public and private debt are associated with risks to financial stability and public finances,” IMF Director of Fiscal Affairs Department Vitor Gaspar told the media during a release of the 2021 Fiscal Monitor Report.
“The debt of governments, households and non-financial corporations added up to USD 226 trillion in 2020 – USD 27 trillion above 2019. This increase is, by far, the largest on record,” he said.
This figure includes both public and non-financial private sector debt.