Governments around the world are borrowing $ 12.6 trillion in 2021

Standard & Poor’s estimated in a report that government loans around the world will reach around $ 12.6 trillion this year, which is a decrease of more than 20% from historic levels recorded in 2020, but it is still higher. 50% higher than the average for the years preceding the Corona virus pandemic.

According to the agency, the additional financial costs that governments will need to support their economies during the epidemic are expected to reach $ 10.9 trillion in 2020 and 2021, or more than 30% of global GDP in 2020, indicating that this would lead à Total commercial debt hit a record $ 67.5 trillion at the end of this year.

According to the agency, the unprecedented monetary stimulus has allowed advanced market economies and many emerging market economies to borrow more, while keeping interest charges relatively stable, noting that governments will have to overcome political risks. and economic to start stabilizing public finances at some point. when the world witnesses the introduction of vaccines with the start of the epidemic’s recovery stages, indicating that failure to do so will put pressure on the sovereign classifications of governments, according to the Al-Rai newspaper.

The agency stressed that the combination of monetary and fiscal policy used to tackle the epidemic was effective in providing the support needed to prevent further economic collapse around the world, while supporting the stability of the majority of sovereign ratings. , noting that a return to sustainable economic growth is crucial.