IW Long Reads: Don't look up - should investors be scared of the global coronavirus debt mountain?

Counting the cost of the pandemic - and how to pay it off

clock • 4 min read

Covid-19 support programmes have ballooned global governments' debts, creating unhelpful comparisons to profligate household budgets and a 'TINA environment' for equities: There Is No Alternative. The UK is forecast to borrow £392bn this year to plug the worst effects of the pandemic, the most in real terms since World War II. A throwback from the 2008 Global Financial Crisis has re-emerged - that debt-burdened states are like households where borrowings must be honoured fast on pain of ruin. "The fiscal dynamics of a government and a household are fundamentally different. It's like comparing...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

ECB expected to hold interest rates at 2% as cutting cycle 'likely ended'

ECB expected to hold interest rates at 2% as cutting cycle 'likely ended'

Political turmoil could derail ECB’s approach

Michael Nelson
clock 10 September 2025 • 2 min read
Confidence in global markets continues to retract as uncertainty bites

Confidence in global markets continues to retract as uncertainty bites

Sentiment toward North America fell 14%

Michael Nelson
clock 10 September 2025 • 2 min read
Paras Anand: Investors should brace for correction as markets face winter of discontent

Paras Anand: Investors should brace for correction as markets face winter of discontent

'Time to rebalance portfolios'

Paras Anand
clock 10 September 2025 • 4 min read
Trustpilot