Covid packages spur debt-to-GDP ratios
The average government debt level in Asia-Pacific is at an 18-year high, with most developing economies in the region trying to stabilise it at current levels by 2027, according to recent research.
According to a survey by the UN Economic and Social Commission for Asia and the Pacific (UN Escap), the number of countries rated at high risk of debt distress in Asia-Pacific has been surging in line with rising public debt and debt servicing costs.
In 2019, the average government debt-to-GDP ratio in developing countries in the region was at an 11-year high of 40.6%.
The figure then increased to 49.5% of GDP in 2021, driven by large stimulus packages and falling government revenues as a result of the pandemic, with…
