Global Public Debt Increased to 97.6% of GDP Last Year

The volume of public debt worldwide rose in 2020, reaching 97.6% of GDP, compared to 83.5% the previous year, according to data from the International Monetary Fund (IMF).

The total amount of debt is calculated to be $89.6 trillion. At the same time, it is noted that in 2021, the total volume of debt is projected to reach up to 99.5% of GDP.

"Global budget support measures amounting to $14 trillion are helping to save lives and preserve means of survival, as well as mitigating the pandemic's impacts on output and consumption," the IMF report states.

It is emphasized that there is a need to develop reliable medium-term budgetary standards, especially in countries with high levels of debt. Tax reforms are noted as a key element of such a strategy.

A significant rise in public debt was particularly observed last year in developed countries, which can attract funds at low-interest rates. The U.S. public debt reached nearly 129% of GDP in 2020, compared to 108% the previous year. The IMF forecasts further debt growth this year to reach 132.5% of GDP.