Asia Pacific central government borrowings to remain high this year: S&P ANI | Updated: Mar 02, 2021 11:29 IST
Long-term commercial borrowing for the region is likely to be 4.1 trillion dollars this year after reaching a record 4.6 trillion dollars in 2020, it said in a report.
Although it is a reduction from last year, sovereign commercial borrowing in 2021 will still be well above the sub-3 trillion dollar annual levels recorded in the few years leading up to 2019. We expect reduced issuances out of China and Japan to account for the bulk of decline.
Although the fighting against Covid-19 continues, its burden on government finances is likely to be lower. For one, vaccines being rolled out in many countries should allow governments to rein in the disease and lower the infection rates globally sometime this year.