Daily Management Review

Pandemic aid to national economies reaches $14T


At the end of last year 2020, financial support provided by governments to national economies because of the coronavirus pandemic reached a total of $14 trillion. This was revealed in a report by the World Monetary Fund (IMF).

Of this amount, $7.8 trillion came from additional spending and revenue waivers.

Another $6 trillion came from guarantees, loans and capital injections.

"This support varied from country to country, depending on the impact of pandemic shocks and the ability of governments to borrow," the IMF notes.

According to IMF analysts, fiscal support measures in developed countries have been approved for several years. Meanwhile, poorer - developing countries - have introduced measures as short-term ones.

Overall, the fiscal support, along with the economic downturn around the world, resulted in rising public debt and deficits. So, over 2020 the average global public debt is close to 98% of global GDP. The pre-pandemic forecast was 84%.

source: imf.org