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Government Borrowing Jumps by Most on Record in Covid Pandemic

  • Surge is nearly double increase seen in financial crisis: OECD
  • Rising reliance on short-term funding heightens risks: OECD

Government borrowing from markets in the world’s richest economies surged by a record 60% in 2020, with an increasing reliance on short-term funding that intensifies refinancing risks, the Organization for Economic Cooperation and Development said.

The jump is almost double that recorded in the 2008 financial crisis, and borrowing is expected to increase further still in 2021, albeit at a slower pace, to reach $19.1 trillion.