As expected, the pandemic has brought a tsunami of indebtedness to the world for the countries, although this tide has reached each economy in different ways. In fact, when speaking of the increase in government obligations with respect to GDP, Colombia is the one with the highest increase in the region.
(Lea: The pandemic infected the foreign debt, which already reaches 53.6% of GDP)
According to the latest report from the Institute of International Finance (IIF, for its acronym in English, Colombia’s government debt has risen from 51.3% of the START in September 2019, to 62.2% at the end of the third quarter of this year, an increase of 10.9 percentage points, which is not seen in the rest of Latin America.
In this sense, for the region as a whole, this advance is 5.3 percentage points, going from 68.4% to 73.7% of GDP. And although it is worth noting that other Latin economies have a higher level of public obligations, in none have they grown in percentage terms as in Colombia: Brazil has an increase of 5.5 pps (up to 93.1% of GDP), Chile of 2.6 pps (35.8%), Mexico of 6.5 pps (42.9%) and Argentina, even, the reduced by 1 percentage point, to 95.5% of its economy.
Of course, the group of countries in the world have increased their public debt more than Colombia, with an increase of 16.1 percentage points, going from 88.7% to 104.8% of global GDP.
INCREASE IN ALL DEBT
As the report indicates, it is not only public debt that there are rises. In the case of Colombia, household liabilities rose to 27.8% of GDP in September 2019, up to 31.2% in the ninth month of this year, a figure that is slightly above 26.5% that presents the whole of the region.
Regarding companies in the real sector, the country’s debt went from 34.7% of GDP to 38.9%, a figure that, in this case, is below that of the region, which amounts to 43.3% of GDP. total economy.
Finally, the financial sector has a debt of 7.5% of GDP, well below the regional figure of 35.5% of GDP.
This trend is reflected at the international level, as the debt of the world economy will end this year at historic record levels.
According to the IIF report, world debt is on its way to close 2020 with a total figure of US $ 277 trillion, so that indicator would have increased by around US $ 15 trillion during 2020, around the size of the Chinese economy. . This, in turn, assumes that credits would reach up to 365% of global GDP.
The indebtedness of developed countries now reaches 432% of their GDP, while in the emerging markets of the world, this figure was set at 250% of the economy.