Publication: Drivers of Public Debt in East Asia and Pacific Economies
Public debt in developing East Asia and Pacific (EAP) economies has increased markedly since the recession in 2020 induced by COVID-19 pandemic. This brief uses standard debt dynamic accounting decomposition to quantify the main drivers of debt accumulation in developing EAP countries since 2000. In the aftermath of the COVID-19 pandemic, larger primary deficits have been the main drivers of the increase in the ratio of public debt to GDP in most developing EAP economies. While strong GDP growth and, to a certain extent, inflation have helped deflate public-debt-to-GDP ratios during the past two decades, they have, on average, been more muted since the COVID-19 shock.
“Islamaj, Ergys; Samano, Agustin. 2022. Drivers of Public Debt in East Asia and Pacific Economies. Research & Policy Briefs;60. © World Bank, Washington, DC. http://hdl.handle.net/10986/38422 License: CC BY 3.0 IGO.”