Newzbusiness.com
Just connect

US, Japan national debt surges by $8 trillion in the last 12 months, China recovers

The record surge in national debt for the covered countries is mainly due to the coronavirus pandemic

3

US, Japan national debt surges by $8 trillion in the last 12 months, China recovers

The coronavirus-induced recession has seen countries that were already battling a skyrocketing national debt plunge into more crisis.

Data analyzed by Finbold indicates that the top five countries globally with the highest public debt added $9.17 trillion between March 2020 and March 2021. The United States tops with the debt growing by $4.57 trillion from $23.45 trillion to $28.0.2 trillion.

Elsewhere, Japan’s public debt has grown from $11.42 trillion to $14.64 trillion. Cumulatively, the two countries have added $7.79 trillion in debt. Interestingly, the analysis shows that China’s national debt dropped by $0.57 trillion from $8.56 trillion to $7.99 trillion among the selected leading economies.

In terms of the country’s national debt percentage growth, Germany tops with 35.02%, followed by Japan at 28.2%, and the U.S. ranks third at 19.29%. Italy’s debt grew by 10.8%, with the UK standing at 7.19%.

US debt crisis complicated by Covid-19 response

The record surge in national debt for the covered countries is mainly due to the coronavirus pandemic. The health crisis triggered the most profound economic downturn, with millions of people losing jobs and businesses temporarily or permanently closed; hence, revenues shrunk while spending soared.

Even before the pandemic, the United States was already battling a huge national debt crisis. The situation was further complicated after Congress approved several stimulus packages for relief, widening the debt. Furthermore, the low-interest rates meant that the US had to shoulder a heavier debt burden.

Similarly, Japan’s high national debt stems from the country’s response to the health crisis. The stimulus spending also put more pressure on the already dire public debt.

China’s pandemic response helps lower public debt.

Despite being the virus epicentre, it was controlled swiftly, with economic activities resuming normally. There was a balance between spending and revenue generation, meaning the deficit amount was low over the last 12 months.

China was also able to inject more money into the economy after becoming a key exporter of products needed to fight and curb the coronavirus pandemic. For instance, Asian nations exported a significant amount of face masks and ventilators to countries that lacked the capacity to produce their own.

Away from the pandemic response, China’s declining public debt ties down the policy. In recent years the country has become less reliant on using credit to handle economic slowdowns. Amid the pandemic, policymakers were even reluctant to over-use debt to hit growth targets.

Overall, most countries globally have enacted a massive amount of monetary and fiscal stimulus to prevent a deep and prolonged recession, in return, increasing the public debt burden. However, it appears there has been little effort to balance the coronavirus response with solving the national debt crisis.

, the surging national debt for countries like the US is worrying since it has since surpassed its Gross Domestic Product (GDP) of $21.59 trillion. It is an indicator the country might have problems repaying the loans.

With the debt in the unstainable territory for some countries, it might generally impact the government’s ability to tackle future economic downturns.

[email protected]

3 Comments
  1. Area 52 Delta 8 THC says

    Piece of writing writing is also a fun, if you
    be familiar with after that you can write if not it is difficult to
    write.

  2. delta 8 area 52 says

    Thanks for a marvelous posting! I quite enjoyed reading it, you could be a
    great author.I will make certain to bookmark your blog and will
    come back sometime soon. I want to encourage yourself to continue your great work, have a nice afternoon!

  3. buy delta 8 THC area 52 says

    Thank you for another excellent post. Where else could anybody get that kind of information in such an ideal manner of writing?
    I have a presentation subsequent week, and I’m at the look for such information.

    buy delta 8 THC area 52 – buy delta 8 THC area 52

    buy delta 8 THC area 52 – delta 8 THC for sale area 52

    delta 8 area 52 – Area 52 delta 8 carts

    delta 8 THC for sale area 52 – area 52 delta 8 THC products

    delta 8 THC for sale area 52 – Area 52 Delta 8 THC

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More