Zero Hedge: The Global Cost Of The COVID Pandemic
While the cost of the pandemic will only be truly known in years to come, Deutsche Bank’s Jim Reid writes that “we can get some good early indications by looking at debt increases around the world.”
Looking at the latest debt report by the Institute of International Finance, which we profiled yesterday, the IIF suggested that global debt will hit $277 trillion (365%) by the end of 2020 up around $20 trillion over the year (just shy of the annual size of the US economy). Excluding financial debt (where there is double counting risk), global debt/GDP will go up by 35pp in 2020.
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Update: G-20 nations have now deployed $11 trillion to support a post-Covid economic recovery (CNBC)
WNU Editor: Here is an easy prediction. With the pandemic now accelerating in the second wave, the costs will only keep on rising. I know in Canada politicians are already hinting that support for those who have been impacted by the pandemic will probably end mid-2021. I would not be surprised if most, if not all countries, are making decisions based on this time frame.