SOGEI website background

Financing for Sustainable Development Report 2021

Financing for Sustainable Development Report 2021

Debt levels are rising across developing and developed countries, as economies contract and fiscal deficits widen, under the impact of the COVID-19 pandemic. Global public debt is projected to approach 100 per cent of gross domestic product (GDP) in 2020, up from 65 per cent in 2008. The increase in public debt is more pronounced for developed countries, as developing and least developed countries were more financially constrained in their response to the pandemic and recession. Nonetheless, debt sustainability indicators worsened across the board. Five sovereigns defaulted in 2020. A third of emerging market economies are assessed to be at high risk of fiscal crisis, and over half of least developed and other low-income countries are assessed to be at high risk of, or already in, debt distress.