Debt Tsunami of the Pandemic

Year
2021
Type(s)
Author(s)
M. Ayhan Kose, Peter Nagle, Franziska Ohnsorge, and Naotaka Sugawara
Source
Brookings Institution Future Development blog, December 17, 2021
Url
https://www.brookings.edu/articles/debt-tsunami-of-the-pandemic/

Starting in 2010, a new wave of debt accumulation—the “fourth wave” of debt—had been underway in emerging market and developing economies (EMDEs). With the sharp increase in debt during the COVID-19 pandemic, the fourth wave of debt has turned into a tsunami and become even more dangerous. The tsunami of debt has amplified the difficulty of resolving debt not just because of record debt levels but also because of significant changes in the structure of debt markets.