When the pandemic hit the world in 2020, global debts reached US$226 trillion in 2020, the highest since the second world war. Meanwhile, government, household and private-sector debt in 31 emerging economies reached $98.8 trillion as of June this year, or 2.5 times their collective gross domestic product (GDP), according to the Institute of International Finance.
With mounting debts and little fiscal room, emerging countries may face risks of being unable to pay off their debts and suffering from devastating economic shocks.
