Government debt in developing economies has reached a record high of USD$98 trillion. This is despite total global debt declining for the first time since 2015, driven directly by developed economies, according to a new report by the Institute of International Finance published on Wednesday.
"The external public debt burden of many developing countries worsened due to sharp losses in local currencies (in 2022) against the [US] dollar," the IIF told Reuters, adding that there is “no sign of imminent recovery".
Developing economies yet to recover from the COVID-19 pandemic are facing high-interest rates and a strong US dollar, making it more expensive to service their debt at a time when the price of food and energy is also growing.
