COVID-19 Crisis Triggers Global Debt

Global Public Debt

The COVID-19 pandemic is also having dire consequences for the economy. One of the most notable effects in a large increase in public and private debt.

The world was still resentful of the great recession of 2008 when the Coronavirus health crisis erupted. With the virus spreading massively and many economies still paralyzed, states are coming to the rescue of the economy. For this, large economic stimulus programs are required, which, among other measures, include tax cuts, tax exemptions and loans on favorable terms.

Trying to avoid the fall of strategic companies, to support small entrepreneurs and to avoid a fall in the income of the most affected workers, the governments issue debt to obtain the necessary financing.

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