In a report published by the United Nations, it was announced that the global public debt reached a record 92 trillion dollars in 2022.
According to a report released by the United Nations (UN), global public debt reached a record $92 trillion in 2022 as governments borrowed against crises such as the Covid-19 pandemic. The institution underlined that the debt burden is felt seriously by developing countries.
According to the report released ahead of the meeting of the G20 finance ministers and central bank governors, worldwide domestic and foreign debt has increased more than fivefold in the last two decades, outpacing economic growth. Gross Domestic Product, on the other hand, has only tripled in the period since 2002.
According to the report, developing countries account for about 30 percent of global public debt, while 70 percent of this figure belongs to China, India and Brazil.
59 developing countries have high debt levels
Fifty-nine developing countries face a debt-to-GDP ratio of over 60 percent. This ratio is accepted by experts as a threshold indicating high debt levels.
“Debt is becoming a significant burden for developing countries due to limited access to finance, rising borrowing costs, currency devaluations and slow growth,” the UN report said.
On the other hand, the UN pointed to the net interest debt payments that exceed 10 percent of the income of 50 developing economies around the world, noting that the international financial architecture makes access to finance both insufficient and expensive for developing countries.
“Africa spends more on interest payments than on education or health. Countries face the impossible choice between paying their debts or serving their people,” the report said.