S&P Global Ratings (S&P) estimates global debt to have hit a record $201 trillion by end-2020, equivalent to 267% of GDP. But a near-term debt crisis is unlikely given the continuing recovery of the global economy, APA-Economics reports citing the Agency.
S&P projects global debt-to-GDP to ease to 258% by end-2021 before steadying at around 255%-256% in 2022-2023. The recovery is predicated on a successful vaccine rollout, availability of credit, and rebounding demand.
"However, we expect leverage growth to level off in the coming years as corporates earnings recover, governments rebuild balance sheets, and households reduce new borrowings."