The International Monetary Fund (IMC) has said that India’s debt-GDP ratio rose from 74 per cent to 90 per cent during the COVID-19 epidemic and hoped that it would come down to 80 per cent with the economic recovery.
The world is suffering from the biggest global recession after the second world war
The International Monetary Fund (IMC) has said that India’s debt-GDP ratio rose from 74 per cent to 90 per cent during the COVID-19 epidemic and hoped that it would come down to 80 per cent with the economic recovery. Paolo Mauro, deputy director of the IFF’s Department of Fiscal Affairs, said, in India’s case, the debt ratio was 74 percent of GDP at the end of 2019 before the epidemic, and at the end of 2020 it increased to about 90 of GDP. Percentage has been done. This is a huge increase, but the situation is the same for other emerging markets and developed economies.
He further said, in the case of India, we hope that with the improvement in the economy, the debt ratio will come down gradually. In the medium term, it can come down to 80 percent level with healthy economic growth. In response to a question, he said that the first priority is to continue helping people and companies and especially focus on helping the most vulnerable people. Mauro hoped that next year India’s general budget may see an attempt to reduce the deficit.
The world is suffering from the biggest global recession after the second world war
Meanwhile, IMF managing director Kristalina Georgieva has said that the world is suffering from the biggest global recession after the second world war. He said at the beginning of the IMF and World Bank annual on Wednesday that the situation is expected to improve further, as lakhs of people are benefiting from vaccination and policy support.
Getting compensated for the biggest global recession
He said that many extraordinary and mixed steps were taken in the last one year. Georgiva said that without these fiscal and monetary measures, the global recession of last year could have been three times worse. He said, we have a good news that the light is seen at the end of the tunnel. After the second world war, the biggest global recession is being replenished. As you know, yesterday we increased our global growth forecast by 6 percent.
What is debt-GDP ratio?
Debt-GDP ratio indicates the ability to repay a country’s loan. In this way, the higher the debt-to-GDP ratio, the lower will be the ability to repay its loan. As the debt-GDP ratio increases, the probability of default increases.
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