The average level of government debt in developing countries has increased from 56% to 70% of GDP, - analysis

Марина Онегина Exclusive
VK X OK WhatsApp Telegram
- According to the EDB report, the global economy has managed to return to usual levels of interest rates after a decade characterized by ultra-loose monetary policy.

The analysis covers the period from the late 2000s to the early 2020s. One of the main consequences of rising interest rates, according to EDB experts, has been the increase in debt burden.

In developed countries, the ratio of public debt to GDP increased from 104% in 2019 to 115% by 2024, while in developing countries this figure rose from 56% to 70% of GDP.

The EDB data also indicates a decline in overall investment activity.

“In developed economies, corporate investments in 2023-2024 are expected to increase by an average of only 1% per year, which is significantly lower than the average annual growth rates of 2-4% during the period from 2000 to 2019,” the researchers note.
VK X OK WhatsApp Telegram

Read also:

Write a comment: