Washington, Pretr. The International Monetary Fund (IMF) said on Wednesday that global debt has reached an all-time high of $226 trillion. India’s debt has increased from 68.9 percent of its GDP in 2016 to 89.6 percent in 2020. It is projected to fall to 90.6 percent in 2021 and then to 88.8 percent in 2022. At the same time, it is projected to reach 85.2 percent in 2026. China contributed 90 percent of the global debt, while the remaining emerging economies and low-income developing countries contributed about seven percent. The IMF said in its report that the risks to the fiscal outlook have increased. Such difficulties in the global economy are damaging to growth in vaccine production and distribution, especially for emerging markets and low-income developing countries.
At the same time, in the context of India, the IMF said that India will continue to be the world’s fastest growing major economy with a growth rate of 9.5 percent in this financial year (Fy 2021-22) and 8.5 percent in the next financial year. The GDP growth projections made in July put forth India, whose Covid-battered economy shrank by 7.3 per cent in the previous fiscal.
In addition, the global economy is projected to grow by 5.9 per cent in 2021 and 4.9 per cent in 2022 – 0.1 per cent lower for 2021 than the July forecast. IMF chief economic expert Gita Gopinath said in her proposal to the WEO (IMF World Economic Outlook), “Global recovery is on, but the momentum has weakened due to the pandemic.” He said the recorded global COVID-19 death toll due to the highly transmissible delta variant has reached close to 5 million and poses a health risk. He cautioned that overall, risks to economic prospects have increased and policy tradeoffs become more complex.