Global Debt Crisis: Developing Nations Struggle Amid Rising Costs

Developing countries faced a record $1.4 trillion in foreign debt service costs in 2023, with interest payments reaching a 20-year high, according to a World Bank report. Interest payments for the poorest nations reached $34.6 billion, four times higher than a decade ago, significantly impacting export earnings.

Developing nations are caught in a debt crisis, having spent a record $1.4 trillion on foreign debt servicing in 2023, with interest rates pushing costs to a two-decade high.

The latest International Debt Report from the World Bank highlights a surge in total foreign debt interest payments from these countries to $406 billion, heavily impacting their budgets for essential services.

The escalating debt dilemma compelled the poorest nations to lean on multilateral institutions for support, as they struggle to manage their financial burdens alongside necessary spending on health and education.

(With inputs from agencies.)