After COVID, what’s next for government debt?

Government indebtedness has surged as countries have battled COVID-19 and its economic fallout, following a decade of increased borrowing. Total debt across governments around the world soared to $83 trillion in 2020, up from $50 trillion in 2010. And this year, government debt is likely to exceed nonfinancial company debt for the first time in decades. What are the consequences of this borrowing binge for the broader economy? What happens when interest rates start to rise? And why is there such divergence between advanced and emerging market countries in how they are positioned to manage the situation?

Guests: Richard Cantor, Chief Credit Officer, Moody’s Investors Service; and Marie Diron, Managing Director ­– Sovereign Risk Group, Moody’s Investors Service.

Host: William Foster, Vice President – Sovereign Risk Group, Moody’s Investors Service.

To read more on this topic, visit The Big Picture page on Moodys.com (some content only available to registered users or subscribers).

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