Debt and development finance

Public debt can be a powerful tool for development, allowing governments to invest in their people and economies. But when debt grows too large or becomes too costly, it turns into a heavy burden.

This is especially for developing countries, whose public debt has grown twice as fast as that of advanced economies since 2010. They have also been borrowing at higher average rates than many advanced economies, making it harder to invest in schools, hospitals, infrastructure and other sectors critical for sustainable development.

Developing countries must not be forced to choose between servicing their debt or serving their people. There’s a pressing need to reform the international financial architecture to end the debt trap and unlock long-term investment and finance. We support countries in managing their public debt effectively.

A graph showing that global growth shows no signs of picking up in the near term

Global growth expected to slow to 2.6% through 2026

The projections push growth further below the pre-pandemic average of 3% and far below the 4.4% average seen before the 2008-2009 financial crisis.

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For further information on this topic, please contact us.

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