The world economy is into a record debt

The world economy is into a record debt

FINANCE

2020-07-13 11:23:41

The national debt of every country of entire world will attain one hundred and two percent of World GDP  for the first time in history  by the end of 2020 and could replace the record, just as it did after the Second World War. This is stated on the website of the International Monetary Fund (IMF).

Countries have already despatched 11 trillion dollars to save the financial system from the crisis due to the coronavirus pandemic. The national debt situation is expected to stabilize in 2021, mostly because low interest charges and a recovery in monetary activity. However, the exception will be the USA and China.

Seventy-two countries have already obtained emergency aid from the IMF. Poor states should have access to concessional financing, and in some cases also to grants, in order not to become into debt, experts say. Earlier, the IMF determined that the world financial system will fall via 4.9 percentage this year, with a 5.4 percent recovery expected in 2021.

In May, the European Commission provided a plan to restore Europe, in keeping with which the EU will borrow 750 billion dollars from the capital markets under general guarantees and distribute them in the form of loans and grants. However, so far the countries have not been able to agree on the creation of such a Fund.

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