Record Debt Burdens Haunt Developing Economies, Warns World Bank Economist

Developing countries spent a record $443.5 billion in 2022 to service their public debt, a 5% increase from the previous year, as global interest rates surged, according to the World Bank. The cost of servicing debt for the world's poorest nations could surge by as much as 39% in 2023 and 2024, putting them at high risk of debt distress. The World Bank highlighted that there were 18 sovereign defaults in 10 developing countries in the last three years, more than the total in the previous two decades combined. Multilateral banks have increased efforts to help developing countries refinance their debt as new financing options from private sources shrink.