Global sovereign debt purchases will reach $10.4 trillion in 2022, nearly a third above the pre-coronavirus pandemic average, S&P Global Ratings said in a report.
Despite the economic recovery, government borrowing will remain high because of high debt rollover requirements and the war in Ukraine, the rating agency said in an annual note.
The projection is that 137 countries will borrow the equivalent of US$10.4 trillion in 2022.
While the estimated amount is 30% below the 2020 figure, the overall figure is a third higher than the average borrowing between 2016 and 2019, S&P said.
“Tightening monetary conditions will increase government funding costs,” analysts at the agency said.
“This will pose additional difficulties for countries that have failed to resume growth, reduce reliance on foreign currency financing and where interest rates are already critically high.”
Source: CNN Brasil
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