It is predicted that global government debt will reach almost the same level as global GDP in 2020 From IMF

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The following is the It is predicted that global government debt will reach almost the same level as global GDP in 2020 From IMF recommended by recordtrend.com. And this article belongs to the classification: global economy .

In a report released on October 14, the International Monetary Fund (IMF) predicted that global government debt would reach almost the same size as global GDP (about $90 trillion) by 2020. The debt to GDP ratio reached 98.7%, a record high. In order to deal with the new epidemic, the major countries have taken a total of 12 trillion US dollars of financial measures. How to restore the huge debt scale to normal level will be an important problem after the epidemic.

According to the IMF forecast, the proportion of government debt in GDP of developed countries will reach 125% in 2021, which is higher than that in 1946 (124%) just after World War II, reaching a record high. At the same time, it is much higher than that during the great depression in 1933 (80%) and after the financial crisis in 2009 (89%).

In the context of growing concerns about the second wave of new outbreak, fiscal measures may be further intensified. As a result of the economic recession, tax revenue and expenditure are likely to deteriorate at the same time.

The fiscal expansion of various countries is supported by the central banks that purchase a large number of treasury bonds under the monetary easing policy. However, if the debt continues to expand, interest rates will rise in the long run, and the finance may be unsustainable.

Emerging countries’ government debt will also reach unprecedented levels. The proportion of government debt to GDP will reach 65% in 2021, significantly higher than 41% in 2009. At the end of World War II in 1946, the proportion was only 47%, and the highest value during the great depression in 1932 was only 32%. In 2021, the ratio of government debt to GDP in developing countries will also reach 50%, an increase of 21 percentage points over 2012.

Read more: OECD: the wealthiest countries face $17 trillion in government debt due to the new coronavirus OECD: the epidemic will bring $17 trillion of government debt to rich countries IMF: the ratio of US debt to GDP is expected to expand to 116.9% by 2023 Global economic growth is expected to be 3.2% in 2016 IMF: high global house prices threaten economic stability 2 trillion US dollars of wealth in the Middle East will consume IMF in 15 years? IMF: Asia Pacific economy is expected to shrink by 1.6% in 2020 IMF: global GDP is expected to shrink by 4.9% in 2020

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