What the pandemic means for government debt, in five charts

  1. Debt levels have surged in EMDEs

  2. Unprecedented fiscal stimulus means debt risks have risen.

  3. What goes down will eventually come up

  4. More debt defaults and debt distress are possible

  5. As debt becomes more complex and less transparent, the resolution will become trickier

The COVID-19 pandemic has triggered a steep increase in debt, particularly in EMDEs. This comes on top of a rapid debt increase since 2010.

The COVID-19-related global recession and economic policy response have triggered a surge in debt levels in emerging market.

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