Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Global Debt-to-GDP Ratio Skyrocketed to 356% in 2020, Report Says

Global Debt-to-GDP Ratio Skyrocketed to 356% in 2020, Report Says

The Institute of International Finance has estimated that last year's international response to the coronavirus pandemic significantly added to global debt soaring to an all-time high of $281 trillion in 2020.

In 2020, the world economy's debt-to-Gross Domestic Product (GDP) ratio increased by 35 percentage points from the previous year to 356%, according to a new report released by the Institute of International Finance (IIF).

The survey singled out the international response to the COVID-19 crisis last year, which amounted to $24 trillion in public and private sector debt. It brought the global total to a whopping $281 trillion, as per the IIF.

"The upswing was well beyond the rise seen during the 2008 global financial crisis. Back in 2008 and 2009, the increase in global debt ratio was limited to 10 percentage points and 15 percentage points, respectively", the report added.


Governments' stimulus programmes were mentioned by the survey as the primary drivers of the so-called global debt mountain.

The programmes contributed to at least half of the deficit, which was followed by firms, banks, and households that added $5.4 trillion, $3.9 trillion, and $2.6 trillion, respectively.

An additional $10 trillion in global debt is expected to materialise later this year, the IIF warned in the wake of a report by the American credit rating agency S&P Global Ratings, who argued that "nearly half of developed sovereigns (14 out of 32) will manage to put their ratios of debt-to-GDP on a solid downward path by 2023".


The report also pointed to emerging markets, where "27 out of the 60 largest sovereigns are set to put debt-to-GDP on a solid downward path, according to our projections, and another 13 should either stabilise or slightly lower debt-to-GDP by 2023".

The predictions come a few months after officials from the Group of 20 most industrialised nations agreed to extend the Debt Service Suspension Initiative (DSSI) freeze on official debt payments for the world's most vulnerable countries by an additional six months, until June 2021, amid a sharp economic contraction driven by the COVID-19 pandemic.

The International Monetary Fund (IMF), for its part, warned at the time that the global economic recovery may lose momentum. According to the IMF, while 2021 may bring growth of 5.2 percent, recovery was suggested to be "partial and uneven".

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×