Debt levels expected to sharply increase in 2020, stabilise as economies recover: IMF

Washington

Global debt is expected to increase significantly over the next year, the top economist of the International Monetary Fund said yesterday, while moratoriums on debt payments and debt restructuring may need to be continued as the world economy emerges from the coronavirus pandemic lockdown.

While downside risks prevail in the global economic outlook, debt to output levels will stabilise as economies recover, said Gita Gopinath, the IMF Chief Economist, in a press conference. She said some countries will require aid including debt restructurings, without specifying details, and called on official creditors to provide debt relief to poor countries.