According to a report by Fitch Ratings, released today, Wednesday, global sovereign debt rose by ten trillion dollars, to about 78 trillion dollars, or 94% of Gross domestic product, as governments boosted spending on health and bolstered economies that have been wracked by the Corona pandemic.
Fitch noted that a record increase in government debt worldwide will affect emerging markets disproportionately, as it raises the failure of developing countries to benefit from lower interest rates. Debt service burdens are a cause for concern.
The Fitch report concluded that average interest rates on the total balance of government debt have fallen to two percent from four percent over the past ten years in developed markets. In emerging markets, average interest rates rose from 4 to 5%.
Fitch expects interest payments to developed and emerging market governments to converge to about $ 860 billion by 2022, even though developed market debt is three times that of emerging markets. / p>
It is worth noting that, last year, five countries defaulted on their sovereign debts: Argentina, Ecuador, Lebanon, Suriname and Zambia.
