Developing Countries Paid Record $443.5 Billion on Public Debt in 2022

December 13, 2023-Poorest countries face risk of debt crises as borrowing costs surge
Amid the biggest surge in global interest rates in four decades, developing countries spent a record $443.5 billion to service their external public and publicly guaranteed debt in 2022, the World Bank's latest International Debt Report shows.

The increase in costs shifted scarce resources away from critical needs such as health, education, and the environment.

Debt-service payments-which include principal and interest-increased by 5 percent over the previous year for all developing countries. The 75 countries eligible to borrow from the World Bank's International Development Association (IDA)-which supports the poorest countries-paid a record $88.9 billion in debt-servicing costs in 2022. Over the past decade, interest payments by these countries have quadrupled, to an all-time high of $23.6 billion in 2022. Overall debt-servicing costs for the 24 poorest countries are expected to balloon in 2023 and 2024-by as much as 39 percent, the report finds.

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