Global public and private debt saw its biggest drop in 70 years in 2021 after reaching record highs because of the impacts of COVID-19, but overall remained well above pre-pandemic levels, the International Monetary Fund said on Monday, Trend reports citing Reuters.
In a blog released with its inaugural Global Debt Monitor, the IMF said total public and private debt decreased by 10 percentage points to 247% of global gross domestic product in 2021 from its peak of 257% in 2020. That compares to around 195% of GDP in 2007, before the global financial crisis.
In dollar terms, global debt continued to rise, although at a much slower rate, reaching a record $235 trillion last year.
The global lender said private debt, which includes non-financial corporate and household obligations, drove the overall reduction, decreasing by 6 percentage points to 153% of GDP, citing data for 190 countries.
The drop of 4 percentage points for public debt, to 96 percent of GDP, was the largest such drop in decades, it said.