World Bank Reports Developing Countries' External Debt Reaches Record $9.4 Trillion in 2025
The World Bank Group announced that the external debt of developing countries surged to a record $9.4 trillion in 2025, marking a 5.5% increase and the fastest growth since 2021. This information was released in its International Debt Report (IDR) 2026. The report highlights that this increase is approximately four times the average recorded between 2022 and 2024. A significant portion of this rise is attributed to private financing, with borrowing from private creditors increasing substantially. Bond issuance by public entities also saw a nearly 35% rise, reaching $251 billion, the highest level in five years. The report also noted that the cost of finance has not improved despite better access to international finance. Developing countries paid $436 billion more in debt service than they received in new financing between 2022 and 2025, though this trend shifted in 2025 to a net inflow of $45 billion. Currency movements, particularly a weakening U.S. dollar, also contributed to the increase in reported de...
