Global debt to hit 260% of GDP, but low interest rates to help: S&P

Global debt levels could reach about 260% of gross domestic product by year-end, though low interest rates mean the ability to service it will be manageable, according to S&P Global Ratings.

The pile-on of debt was necessary given policy responses during the pandemic, Vera Chaplin, the credit ratings agency’s managing director and lead analytical manager, said Thursday at the Asia Briefing Live forum co-hosted by Bloomberg and Asia Society Australia. Higher leverage and weakened credit metrics amid the recovery will probably trigger more defaults, she added.  

Chaplin said the recovery won’t be complete until vaccinations are widespread enough to make people more