Analysis: A world debt crisis is not imminent, despite Covid-19
How the new debt taken on by governments is used will be a key factor determining the global economic recovery from the pandemic
As countries, companies and households confront the Covid-19 pandemic’s economic fallout, many market watchers are sounding the alarm about rapidly rising leverage worldwide.
And for good reason: in an acceleration of a years-long trend, the debt-to-GDP ratio among these three sets of borrowers is set to swell by 14 per cent this year, to a record 265 per cent.
But while this has raised the risk of insolvencies and defaults, particularly among corporations, S&P Global ...