Senate Democrats intend to introduce legislation to raise the nation's debt limit, as the White House signaled it would accept even a brief extension in borrowing authority to prevent an unprecedented default..
Senate Democrats intend to introduce legislation to raise the nation's debt limit, as the White House signaled it would accept even a brief extension in borrowing authority to prevent an unprecedented default.
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Global debt has jumped to a new high
The International Monetary Fund (IMF) said global debt has jumped to a new high of $226 trillion with India’s dues projected to rise to 90.6 per cent in 2021, due to COVID-19 and policies put in place to respond to it. Advanced economies and China contributed over 90% to the accumulation of debt in 2020 and the remaining emerging economies and low-income developing countries contributed only around seven per cent. India's debt increased to 89.6% of its GDP in 2020 from 68.9% in 2016. This increase is, by far, the largest on record. This figure includes both public and non-financial private sector debt. The remaining emerging economies and low-income developing countries contributed only around seven percent. It is projected to jump to 90.6 percent in 2021 and then decline to 88.8 percent in 2022, to gradually reach 85.2 percent in 2026. The IMF said risks to the fiscal outlook are elevated. A scaling up of vaccine production and delivery, especially to emerging markets and low-income developing countries, would limit further damage to the global economy.
Constraints on financing are particularly severe for poorer countries. Noting that in 2020, fiscal policy proved its worth, he said the increase in public debt, in 2020, was fully justified by the need to respond to COVID-19 and its economic, social, and financial consequences. But the increase is expected to be one-off. After that it is projected to stabilise at about 97 percent of GDP. These debt dynamics are driven by a strong contribution from nominal GDP growth, accompanied by a much more gradual reduction in the primary deficit, he said. The IMF further said that, risks to the fiscal outlook are elevated. A scaling up of vaccine production and delivery, especially to emerging markets and low-income developing countries, would limit further damage to the global economy. On the downside, new variants of the v
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President Barack Obama says he 'will not compromise' over his insistence that Congress lift the federal debt ceiling. The nation's credit rating was downgraded the last time lawmakers threatened inaction on the debt ceiling, in 2011.
News video | 519 views
President Barack Obama has urged Congress to raise the US debt limit during the final news conference of his first term.
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The Republican-controlled House will vote next week to permit the government to borrow more money to meet its obligations, a move aimed at heading off a market-rattling confrontation with President Barack Obama over the so-called debt limit.
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Watch My other Vlogs -
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Beauty Tips video | 669 views