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IMF Report: Global Debt Increased to $226 trillion in 2020; India’s Debt in 2021 Projected at 90.6%

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Global debt jumps to a new high of $226 trillion (2)As per the October 2021 Fiscal Monitor Report of International Monetary Fund (IMF) titled, ‘Fiscal Monitor: Strengthening the Credibility of Public Finances’, the global debt (issued by governments, nonfinancial corporations, and households) in 2020 was increased by $27 trillion (from 2019) to a new high of USD 226 trillion.

  • India’s debt in 2021 was projected to rise at 90.6 percent.
  • Global debt in 2021 was reported at 97.8 percent whereas the 2022 debt was projected to be 96.9 percent.

India’s Fiscal Balance and Debt Comparison (2016-2026):

 Year Government Fiscal Overall Balance
(% of GDP)
Government Debt

(% of GDP)

2016 -7.1 68.9
2020 -12.8 89.6
2021(Projection) -11.3 90.6
2022(Projection) -9.7 88.8
2026(Projection) -7.8 85.2

Key Points of the Report:

i.Advanced economies and China contributed to more than 90 percent of worldwide debt in 2020 whereas the remaining emerging economies and low-income developing countries contributed for around 7 percent.

ii.Global deficits are expected to decrease further by almost 3 percent in 2022 and return to their pre-pandemic levels by 2026.

iii.Global government debt is expected to decline in 2021 and 2022 by about 1 percentage point of GDP per year.

iv.The debt crisis might include more people in poverty in 2021, which is estimated to be around 65 to 75 million higher than pre-pandemic levels.

Note: The IMF notified the risk of a sharp decline in global equity prices and home values as the central banks might withdraw the support they have provided during COVID-19.

Recent Related News:

In order to boost global liquidity and curb COVID-19 impact, the Board of Governors of the International Monetary Fund (IMF) has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) w.e.f. August 23, 2021. It is the largest SDR allocation in the history of the IMF.

About International Monetary Fund (IMF):

Establishment –  1944
Headquarters – Washington, D.C., United States
Member Countries – 190
MD – Kristalina Georgieva