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$24 Trillion Leap In Global Debt Driven By COVID-19, Experts Say

(Photo by TOLGA AKMEN/AFP via Getty Images)

Elizabeth Louise Contributor
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The coronavirus pandemic has sent the global debt soaring to a new level, having added $24 trillion of debt in the past year, according to a study from The Institute of International Finance.

The global debt monitor from The Institute of International Finance (IIF) shows that as a result of the increased debt, the world debt is now $281 trillion. The worldwide debt-to-Gross Domestic Product (GDP) ratio currently at over 355%, Reuters reported.

Government service programs were estimated to be responsible for half of the rise in global debt, according to the study.

The study from the IIF predicted that another $10 trillion would be added in 2021, surpassing $92 trillion in debt.

“We expect global government debt to increase by another $10 trillion this year and surpass $92 trillion,” the study said according to Reuters. (RELATED: Coronavirus Spending Has Created A Global Debt Crisis – Here’s What That Means For The Economy)

Among the countries responsible for the rise in the debt-to-GDP were Greece, Spain, Britain, and Canada, while South Africa and India recorded the largest increases in government debt ratio, Reuters reported.

Switzerland was the only mature market economy that recorded a decline in debt ratio, as the “emerging markets” — China, Turkey, Korea, and the United Arab Emirates — saw their debt increase.

The report also noted that borrowing is expected to remain above pre-pandemic levels, but as countries start to reopen economies it should help their GDP growth.