Covid-19 rescue packages risk years of public debt say economists

8 May 2020 (Last Updated May 8th, 2020 09:02)

Public debt concerns are being voiced by leading macroeconomic influencers.

Governments across the world are providing stimulus packages to protect people from the impact of the Covid-19 pandemic.

Although these packages are essential, as millions have lost their jobs due to lockdown measures, it may lead to huge levels of public debt. The consequences of the debt are expected to impact economies for a long time.

David W Versailles, an economist, shared an article on how public debt in advance economies will reach high levels amid the Covid-19 pandemic.

The article notes governments should find a balance between stimulus and restraint as too much public debt can burden societies for years to come.

 

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