cross-posted from: https://lemmy.nz/post/23662164
Global public debt could increase to 100 percent of global gross domestic product by the end of the decade if current trends continue, according to projections in our latest Fiscal Monitor. The rising ratio of public debt to GDP reflects renewed economic pressures as well as the consequences of pandemic-related fiscal support, according to our report. This trend raises fresh concerns about long-term fiscal sustainability as many countries face rising budget challenges.
The Chart of the Week shows that about a third of countries, accounting for 80 percent of global GDP, have public debt that’s both higher than it was before the pandemic and rising at a faster pace. More than two-thirds of the 175 economies in our study now have heavier public debt burdens than before COVID spread in 2020.
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Debt is another ones wealth. If a small debtor can not pay the bank, they have a problem. If a large debtor can not pay, the bank has a problem. In other words it is better to have public debt, then private debt.