Global public debt has reached a record high of $97 trillion in 2023.
Public debt can be vital for development.
Governments use it to finance their expenditures, to protect and invest in their people, and to pave their way to a better future.
However, it can also be a heavy burden.
This is true when public debt grows too much or too fast – a situation that is what is happening today across the developing world. Since 2010, public debt in developing in developing countries has grown twice as fast as in developed economies.
Developing countries also face higher borrowing costs, which increase the resources needed to pay creditors. Developing regions borrow at rates that are 2 to 4 times higher than those of the United States and 6 to 12 times higher than those of Germany.
Key statistics
- $97 trillion – the new record reached in 2023 for global public debt.
- 3 billion – the number of people living in countries that spend more on interest payments than on either education or health.
- 54 – the number of developing countries spending more than 10% of their revenues on net interest payments.
- 48 – the number of developing countries spending more on interest payments than on either education or health.
- $29 trillion – developing countries’ total public debt in 2023.
- $847 billion – developing countries’ net interest payments on public debt in 2023.
- -$49 billion – the negative net resource transfer developing countries experienced in 2022, paying more to external creditors than they received in new disbursements.
The impact of these figures and trends on development is a major concern, as people pay the price.
Developing countries must not be forced to choose between servicing their debt or serving their people. Instead, the international financial architecture must evolve to ensure a prosperous future for both people and the planet.