Poorest countries' debt hits record $9.4 trillion
· Economy · United States
Debt owed by developing countries rose to a record $9.4 trillion last year, with the poorest paying the highest interest rates since the late 1980s, World Bank data shows. The cost of servicing external debt is preventing developing countries from investing for the future. The UK government is preparing to champion a "new drive" on the issue. A separate UN report warned that climate adaptation funding is falling far short of developing countries' needs.
Why it matters：Record debt service is draining budgets in the world's poorest countries, threatening development and climate spending for years to come.
Key points
- Developing countries' debt reached a record $9.4 trillion last year.
- The poorest pay the highest interest rates since the late 1980s.
- The UK is preparing a new push on the issue.