The Institute of International Finance (IIF) says global debt will soar to a record $277 trillion by the end of 2020 as governments and companies continue to spend in response to the COVID-19 pandemic. Already, the debt has ballooned by $15 trillion this year to $272 trillion through September. Governments from developed markets account for more than half of that increase, according to the IIF’s Global Debt Monitor.

Governments from Developed Markets Are the Biggest Borrowers

According to a report, debt repayments will prove to be “much more onerous” despite the “record-low borrowing costs across the globe.” Declining revenues to emerging market governments will be partly to blame. IIF data shows that emerging market debt-to-GDP hit nearly 250% in the third quarter.

For China, the debt-to-GDP ratio reached 335% in the just-ended quarter, while the entire 2020 ratio is expected to peak at around 365% of global GDP.

On the other hand, developed markets’ overall debt jumped to 432% of GDP in…

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Source: https://news.bitcoin.com/report-pandemic-response-pushed-global-debt-to-272-trillion-in-q3-5t-in-borrowing-expected-in-q4/