The general government debt (GGD) which includes what the state and state-owned enterprises owe of Commonwealth countries declined in 2021 and 2022, as a share of combined gross domestic product (GDP), meaning they owed less debt compared to the size of their economy.
By Dr Mohamed Z M Aazim, Adviser, Debt Management Unit, Commonwealth Secretariat
However, in 2023, this debt share started going up again, and its getting close to the size of their economies. This is certainly not a good sign.
This situation is putting governments in a tough spot, leaving them with limited options to make the right decisions to reduce their debt burdens. For Commonwealth countries that are currently in debt distress, meaning they cant make timely paymen…
Read the full article at: https://thecommonwealth.org/news/blog-rising-government-debt-gdp-ratios-need-urgent-response