World’s largest economies see debt grow by more than $8tn during pandemic
Data analysed by Finbold indicates that the top five countries globally with the highest public debt added $9.17tn between March 2020 and March 2021.
The United States leads with the debt growing by $4.57tn from $23.45tn to $28.02tn. Elsewhere, Japan’s public debt has grown from $11.42tn to $14.64tn. Cumulatively, the two countries have added $7.79tn in debt.
The United Kingdom’s public debt has also grown by $0.24tn from $3.34tn to $3.58tn.
In March 2020, Germany’s national debt stood at $2.37tn, adding $0.83tn as of March 2021.
Italy’s debt slightly surged by $0.31tn from $2.87tn to $3.18tn.
Interestingly, the analysis shows that China’s national debt dropped by $0.57tn from $8.56tn to $7.99tn among the selected leading economies.
Pandemic response to pandemic contributes to a surge in national debt
The report explains why most countries witnessed a sharp increase in national debt over the last 12 months.
According to the research report: “Overall, most countries globally have enacted a massive amount of monetary and fiscal stimulus to prevent a deep and prolonged recession, in return increasing the public debt burden. However, it appears there has been little effort to balance the coronavirus response with solving the national debt crisis.”
In terms of the national debt percentage growth by Country, Germany tops with 35.02%, followed by Japan at 28.2%, and the US ranks third at 19.29%. Italy’s debt grew by 10.8%, with the UK standing at 7.19%.