The United Nations is raising the alarm on the escalating global debt burden, urging urgent reforms to protect the future of both people and the planet. According to a new report by UNCTAD, titled ‘A world of debt: A growing burden to global prosperity’, public debt worldwide has reached a historic peak of $97 trillion in 2023.
Developing countries account for $29 trillion of this debt, with Asia and Oceania holding over three-quarters of the total. The report highlights the stark contrast among developing regions and the challenges they face in repaying their debts due to inequalities in the international financial system.
The report also outlines the impact of high global inflation and real GDP growth on public debt-to-GDP ratios in developing countries. This system exacerbates the debt burden by limiting access to affordable development finance and forcing countries to borrow from volatile sources.
As a result, developing countries are facing challenges in meeting interest payments that are outpacing critical public expenditures like health and education. Urgent reforms are needed to address these disparities and ensure a sustainable future for all.