China’s public debt grows fastest in the world
A new report by British wealth manager Janus Henderson shows that global government debt is expected to grow 9.5% this year to a record $71.6 trillion. The increase in debt will mainly be attributed to the US, Japan and China promote.
Governments around the world have ramped up their borrowing since the pandemic, according to recently published research COVID-19 in an effort to protect its economy from recession.
According to Janus data, China’s public debt grew the fastest and most in terms of cash, growing by a fifth – or $650 billion last year. Among the large, developed economies, Virtue had the largest share increase, with debt ratios soaring by 15%, almost twice the global average.
Research shows that global government debt has tripled in the past two decades, but one mitigating factor is low debt service levels. However, these levels are also growing strongly now, growing by about 14.5% in 2022 to $1.16 trillion.
“The greatest impact is likely to be felt in the UK due to rising interest rates, the impact of higher inflation on large amounts of public debt and the cost of quantitative easing (QE),” the report said. .
Bethany Payne, Global Bond Portfolio Manager at Janus Henderson, notes: “The COVID-19 pandemic has had a huge impact on government borrowing – and the aftermath will continue to drag on. for a long time”. She added that “war is going on in Ukraine is also likely to pressure Western governments to borrow more to finance increased defense spending.”
Janus Henderson points out that rising levels of government borrowing around the world present an opportunity for investors in short-term bonds that currently look attractive compared to riskier longer-term bonds.
at Blogtuan.info – Source: laodong.vn – Read the original article here