WHY UNPRECEDENTED GLOBAL DEBT REACHES ALL TIME HIGH
It’s in the news that global debt have reached all time high and it’s for a reason
Due to the coronavirus pandemic, the global economic situation experiences situations that were only experienced in times of wars or international catastrophes.
Inflationary processes are in all nations and some of them, as is the case in the U S already announce measures with which they plan to change this by 2022.
In this context, a report carried out by the International Monetary Fund shows that 2020 saw the largest increase in debt in a year since World War II. “World debt increased 28% to 256% of global GDP.
One of the key points highlighted by specialists is that over the next year, governments will have to find a balance point between high indebtedness and rising inflation.
A significant tightening of financial conditions would exacerbate pressure on the most indebted governments, households and companies“, they explained in that sense.
According to the report, to find a moment in history where so much debt has been taken on in one year you have to go back to the WWII.
Although debt levels were high before the pandemic, they never matched those at that time when humanity suffered one of its worst warfare.
You Can Also Read
