22:12
Traffic jam:   2
$
92.5919
100.2704

World debt against the backdrop of a pandemic

20 November 2020
2900
2 min.
4
World debt against the backdrop of a pandemic

Growth in global debt

Global debt grew rapidly in the first nine months of 2020 and, according to IIF, increased by $15 trillion compared to the same period last year.

Global government and company debt is expected to exceed $270 trillion by 2020, representing 365% of the world's GDP.

According to IIF, in January-September 2020, the debts of emerging markets increased by 26% and came close to 250% of their GDP.

Emerging market debt service costs have also increased this year. This week Zambia became the 6th emerging economy to announce its default this year.

Clearly, the IMF will also provide financial assistance to the poorest countries in the near future.

Luis Oganes of JPMorgan said: "If developing countries try to monetise debt by buying their own government bonds, they will take a very big risk".

Since the beginning of the pandemic, the world's leading central banks have been cutting key rates and contributing hundreds of billions and trillions of dollars to their economies. These measures have helped to reduce the cost of credit across the globe.

The IIF notes that the growth rate of global debt is significantly higher than predicted at the start of the crisis. Between 2016 and the end of September 2020, global debt increased by $52 trillion, and between 2012 and 2016, global debt increased by $42 trillion. From 2016 to the end of September 2020, global debt increased by $52 trillion and in 2012-2016 only by 6 trillion.

In the vanguard of debt growth in emerging economies, China, where the debts of non-financial corporations have increased most sharply. In total, the debt of emerging markets has now reached 76 trillion dollars.

It should be noted that with the exception of China, the value of US dollar debt declined this year due to the weakening of emerging market currencies against the dollar.

As for developed economies, their total debt increased by more than 50% in 2020 and reached 432% of GDP by the end of September. The United States accounts for almost half of this debt. At the end of the year, the debt of the world's first economy is expected to reach 80 trillion dollars.

Persons1 and Companies3 in the news

Team Leader of Currencies, Commodities and Emerging Markets Research at J.P. Morgan.
1 place
JP Morgan Chase
3 place
Section:

Discussion

Rating companies
Tesla
14 Mention
Instagram
13 Mention
JP Morgan Chase
12 Mention
Walt Disney Company
12 Mention
Ford Motor Company
10 Mention
Netflix
10 Mention
Amazon
9 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8112711058
Died this year
14307156
Born this year
35198136