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2026-11-05T21:14:44.000Z

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Developing Debt Worsens

Developing Debt Worsens

The World Bank said that the external debt of low- and middle-income countries rose 5.5% to a record $9.4 trillion in 2025, while their borrowing from the private sector and bond issuance increased 35% to $251 billion. The poorest countries are paying high interest rates—an average of 8.2% on new private-sector debt and 9.4% on bonds—while principal and interest payments reached $1.4 trillion. The report warned that rising debt and borrowing costs could reduce the resources available for education, health, infrastructure, job creation and long-term development.

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