Even before the outbreak of Covid-19, the level of global debt was high by historic standards. According to the Institute of International Finance, by late 2019 global debt (including private and public debt) was more than US$250 trillion. Public debt, in particular, has increased everywhere since the global financial crisis of 2008.
International Monetary Fund calculations show that public debt ratios in almost 90% of advanced economies are higher than before 2008. On average, such ratios in emerging markets have increased to levels similar to those seen during the crises of the 1980s and 1990s. Public debt has also built up in low-income countries, two-fifths of which are at high risk of debtdistress.
How much global debt has been a…
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