Global gross domestic product (GDP) will not fully recover until 2022 to achieve levels it stood at before the coronavirus pandemic, the Economist Intelligence Unit said in a report on Wednesday, APA reports citing Tele Trader.
The research foresees a jump in public debt levels as governments across the globe provided trillions of dollars to back virus-affected economies. The EIU's report saw the Eurozone facing a large debt crisis as "South European states are still recovering from years of austerity, combined with high levels of public debt, aging populations, and persistent fiscal deficit."
"The European Central Bank would act swiftly to contain the fallout, but a debt crisis in any of these countries would create massive turbulence on financial markets. In turn, the crisis would quickly spread across the globe," the EIU economists said.