Borrowing by governments and central banks to help national economies survive the worldwide business shutdown will push the global public debt load from its 2019 level of 69.4 percent of GDP to 85.3 in 2020, the International Monetary Fund has predicted.
This calculation does not include new commercial or private debt taken on by businesses and individuals to meet payrolls and pay monthly bills.
This year’s annual global public deficit will almost triple, from last year’s 3.7 percent of national income to 9.9 percent by the end of this year.
When lockdowns are lifted, even more borrowing will be needed to finance the economic recovery, the IMF said.
“The human cost of the pandemic has intensified at an alarming rate and the impact on output and public finances is projected to be massive,” the agency noted.
TRENDPOST: This is old news, just made worse by government money pumping schemes.
We have been reporting over the last several years of the burgeoning debt load and how it has inflated a $250 trillion debt bubble… that will burst when the “Greatest Depression” sets in globally.
