The global public debt epidemic is on the rise! –

The International Monetary Fund (IMF) said that globally, the average public debt was around 98% of GDP at the end of 2020, against a forecast of 84% before the epidemic for the same date. Thus advanced countries recorded the largest increase in budget deficit and debts, which can be explained by higher expenditure and lower revenue.

In relation to emerging countries, the expansion of losses was mainly due to weakness of tax revenue due to economic slowdown. In low-income countries, fiscal response has been more limited due to funding challenges and weak social security systems. IMF experts said: “The epidemic is likely to have lasting effects in these countries, particularly in the form of increased poverty and malnutrition.”

According to a Washington-based international body, budgetary aid measures driven by unprecedented health crises reached nearly $ 14 trillion worldwide at the end of December 2020, an increase of some $ 2.2 trillion compared to October 2020. They consist of $ 7.8. Trillions in additional expenses or lost revenue and $ 6 trillion in guarantees, loans and capital injection.

Recalling that vaccination is a “global public good that saves lives and, ultimately, will save taxpayer money in all countries”, the IMF recalls that the sooner the global epidemic ends, the faster the country and the population. Will be able to return to the population. There will be a reduction in the need for public assistance.

Ibtihal Basir / le 7tv.

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