Covid Impact: Global Debt reaches $226 trillion, all-time high!

Thu Oct 14 2021 13:07:43 GMT+0530 (IST)

The world suffered a massive loss due to the Covid-19 pandemic. Almost all the countries faced the wrath of the deadly outbreak of the pandemic forcing them to go for the debts to beat the virus. As a result, the global debt had risen to an all-time high.



The International Monetary Fund (IMF) that aims at fostering global monetary cooperation has conducted a detailed study on the debts taken by countries across the globe. The organisation said that the global debt stood at USD 226 trillion.

In its report, the organisation said that the developed countries and the countries with advanced economies were the major contributors to the global debt. These nations account for as much as 90 percent of the global debt that was taken in 2020 post the emergence of Covid.

On the other hand, the under-developing countries and the countries with low-income accounts for seven percent of the global debts that were taken in the last year to fight the Coronavirus.

Vitor Gaspar, the director of the Fiscal Affairs Department at the International Monetary Fund had released the Report on the Global Debts taken by the countries. Giving his observations, Gaspar said the debts reached an all-time high with the countries keeping the fight against the Covid as their main focus.

Comparing the Global debt in 2019 to that of 2021, the IMF said the difference between the two years was more than 200 trillion. The massive jump in the debts is the biggest rise in the recent past, the organisation said.

Comparing the Global debt in 2019 to that of 2021, the IMF said the difference between the two years was more than 200 trillion. The massive jump in the debts is the biggest rise in the recent past, the organisation said. The global debt stood at over USD 27 trillion and USD 226 trillion in 2019 and 2020 respectively.

Talking about India, the IMF said that India saw a big jump in its debts. In 2016, India had a debt of 68.9 percent of its GDP which rose to 89.6 percent in 2020. The organisation also predicted that the debt of India will increase in the coming years and might stand at 85.2 percent in 2026.