The recovery in global economy from Covid pandemic's aftermath will be staggered with the US leading the recovery, Moody's said
India's government debt is expected to remain elevated at 83 per cent of GDP
LONDON (Reuters) - Global debt is set to reach $200 trillion, or 265% of the world's annual economic output, by the end of the year, S&P Global has forecast - although it doesn't expect a crisis any time soon.
The estimate is based on a report from the Institute of International Finance whose members include over 400 banks and financial institutions across the globe
Social issues will attract further prominence in 2021 in public policies, corporate strategies and investment decisions
Reuters on Monday reported JPMorgan had kept Indian bonds out of its flagship indices
The IIF, which represents global banks and financial institutions, said the first-quarter debt-to-GDP ratio jumped by over 10 percentage points, the largest quarterly surge on record
The steep contraction in output and ensuing fall in revenues along with a sizeable discretionary support have led to a surge in the government debt and deficits
According to experts, the foreign holding cap imposed by the RBI in public debt has deterred inclusion of the country in such indices
The amount, which is also more than three times the world's annual economic output, has been driven by a $7.5 trillion surge in the first half of the year that shows no signs of slowing
That is up from the previous record of $164 trillion in 2016, according to IMF figures
The pace of the debt increase in the first quarter is a concern to the IIF as they note that the quality of the debt has declined, particularly in emerging markets
India's general government debt, at 69 per cent of GDP, according to the IMF, is significantly high for a country at its level of development
IMF's recently released global database shows that the world has a lot to learn from India's thrifty habits
The United Nations calculates the global population is 7.6 billion, suggesting the world's per capita debt is more than $30,000
Years of cheap central bank cash has delivered a sugar rush to world equity markets
Global debt grew by $7.6 trillion in 2016, according to an IIF study