Does Government Debt Increase after Global Recessions?

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/does-government-debt-increase-after-global-recessions/

Global government debt surged to nearly 100 percent of GDP during the global recession of 2020, as the COVID-19 pandemic triggered a collapse in output and governments provided unprecedented fiscal support. As the global economy recovers and fiscal support is withdrawn, a key question is whether government debt (relative to GDP) will stabilize and start to decrease. In a new study, we answer this question by analyzing the evolution of government debt after previous recessions.