Public Debt and Economic Recovery Following the COVID-19 Pandemic
Forbes (Latvian edition) No. 13, August 2020, pp. 6-10
8 Pages Posted: 10 Aug 2020
Date Written: August 4, 2020
One of the main sources of funding for economic recovery in countries after the COVID-19 pandemic is the increase in public debt. But as a result of the COVID-19 pandemic and the strengthening of new trends in the development of the global economy, the level of uncertainty has greatly increased. As a result, countries that significantly increase their amount of public debt will reduce their level of macroeconomic stability considerably.
The article analyses the risks that can have a negative impact on the macroeconomic stability of countries and the possibility of reducing the size of public debt during the period of economic growth after the economic recovery from the COVID-19 pandemic.
The article also shows that one of the factors in deciding to increase public debt is a country's ability to significantly reduce public debt during a period of economic growth and examines the methods of financing economic recovery which will allow countries to increase their level of macroeconomic stability and international competitiveness in the medium and long term.
Keywords: Economic Recovery, Public Debt, COVID-19, Countries Development
JEL Classification: H63, G28, D81
Suggested Citation: Suggested Citation