Global Public Debt is expected to eclipse a 100 per cent of the GDP in 2020-21, and average overall fiscal deficit is expected to escalate to 14 per cent of the GDP in 2020. These are historically unforeseen and high levels of global public debt. However, it's not as macabre a picture as made out to be. Nominal interest rates have taken a dip for the better, not only in level 3 and level 4 income countries, but also its emerging counterparts in level 1 and level 2 economies that can then implement fiscal measures in the absence of inflationary pressures. The rise of poverty and equality, ageing populations and debt rollovers are expected to plague both emerging and developed nations alike, therefore the IMF recommends constant economic vigilance and caution while instituting the fiscal policy to ensure they do not have severe long term consequences. Writer: Insha Hamid
12/07/2020
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