Global debt to hamper growth even after outbreak is over
It is expected to surge to over 342% of GDP or US$270 trillion depending on length of pandemic and depth of recession
London
EXTENSIVE global debt will continue to impede economic growth once the pandemic ends. So far, the only solutions that have been discussed are an acceleration in inflation to lower the debt level in real terms.
Alternatively, debt forgiveness for stricken developing nations may well be on the agenda. Austerity, a failed policy since the 2008/2009 global financial crisis, is unlikely.
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