The world countries, especially developed countries, are facing risks as debt levels rise due to the grievous coronavirus. Climbing to a high of more than $272 trillion during the third quarter, global debt is soon expected to hit another record by the end of 2020.
As the plight goes on, governments across the world have resorted to stimulus packages to assist their people and companies.
Affirming debts as one main concern in developed countries, Sonja Gibbs, IIF’s managing director of global policy initiatives, said debt keeps soaring in mature industries. According to him, trivial growth and surging debt, by another 50%, seen in the developed markets during the pandemic are the issues faced by their governments.
There is also risks for investors, putting funds in government bonds, he added.