Question : Current increase in global debt is the largest one-year debt surge since World War II. It rose by _ points to 256 percent of GDP in 2020.
a. 28 percentage
b. 25 percentage
c. 22 percentage
d. 18 percentage
Ans. a.
Related facts —
- Global debt rose to a record $226 trillion in 2020 as the world was hit by the raging Covid-19 pandemic and a deep recession, the International Monetary Fund (IMF) announced recently(December 2021).
- Current increase in global debt is the largest one-year debt surge since World War II.
- It rose by 28 percentage points to 256 percent of GDP in 2020.
- Debt increases are particularly striking in advanced economies, where public debt rose from around 70 per cent of GDP in 2007 to 124 per cent of GDP in 2020.
- Meanwhile, private debt rose at a more moderate pace from 164 to 178 per cent of GDP in the same period.
- Some countries, especially those with high gross financing needs or exposure to exchange rate volatility, may need to adjust faster to preserve market confidence and prevent more disruptive fiscal distress.