Global sovereign borrowing is expected to reach $12.6 trillion in 2021, down 20 per cent from last year's record level, but still 50 per cent higher than the pre-COVID-19 average, S & P said.

The financial cost of government support for the economy in 2020 and 2021 could reach $10.9 trillion, bringing total commercial debt to a record $67.5 trillion, S & P analysts such as Karen Vartapetov in Frankfurt said in a report.

Emerging market countries have benefited greatly from lower borrowing costs, thereby reducing the risk of additional borrowing.

The surge in inflation "may be temporary" and will be tolerated by the central bank before a big change in interest rates.