COVID-19 will cause bigger debt than World War II: research

The report highlighted that debt is forecast to surpass that of WWII levels

global debt

COVID-19 will cause bigger debt than World War II: research. Source: pexels.com

GlobalData reported that although optimistic expectations for a global economic recovery, global debt is expected to skyrocket by the end of 2021 due to continued growth in government and corporate spending in response to the COVID-19 pandemic.

Developed countries have got the most of the world’s debt (70.2%) in the first quarter of 2021. Nevertheless, in the first quarter of 2021, there was an increase in the level of debt of developing countries to $86.2 trillion, which is 14.7% more than in the first quarter of 2020.

Japan, Italy and the United States all showed high levels of public debt as of 2020. Japan’s public debt as a percentage of its GDP was 256.2% in 2020, followed by Greece (213.1%), Italy (155.5%) and the United States. (127.1%). In the meantime, public debt in developing countries such as Brazil (98.9%), India (89.5%) and China (66.8%) has been relatively low, but has increased over the past year.

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In addition, private sector debt has also grown significantly in 2020 and is expected to continue to rise in 2021. The average debt of non-financial corporations worldwide was 104.1% in 2020, up 95.5% from 2019.

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