A major legacy of the COVID-19 pandemic will be a significantincrease in already high global debt levels. In the U.S., government debt is expected to rise to $27 trillion by September 2020 from $23 trillion a year ago — a debt-to-GDP ratio of 135%. In OECD countries, debt levelsare expected to increase by $17 trillion, rising from 109% to more than 137% of GDP.
Public sector debt increases reflecthigher healthcare spending, actions to alleviate the economic effects of the COVID-19 crisis, emergency loans and the loss of tax revenues
revenues.
Households and businesses have also substantially increased borrowingsto cover income shortfalls. If the recovery is slower than expected,then the rise in borrowings will be greater.
Read more at;
Government’s cure for the coronavirus recession is worse for the global economy than the disease - MarketWatch
Public sector debt increases reflecthigher healthcare spending, actions to alleviate the economic effects of the COVID-19 crisis, emergency loans and the loss of tax revenues
revenues.
Households and businesses have also substantially increased borrowingsto cover income shortfalls. If the recovery is slower than expected,then the rise in borrowings will be greater.
Read more at;
Government’s cure for the coronavirus recession is worse for the global economy than the disease - MarketWatch
