The United Nations Conference on Trade and Development (UNCTAD) released a report on June 26th stating that:
Global public debt in 2024 will increase from $97 trillion in 2023 to $102 trillion, reaching a historical high, with the most severe impacts felt by developing countries.
In its latest “Debt World” report, UNCTAD noted that since 2010, the growth rate of public debt for developing countries has been twice that of developed economies, reaching $31 trillion by 2024. Additionally, developing countries are burdened with excessive debt costs, with interest payments on debt reaching $921 billion in 2024, an increase of 10% compared to 2023.
The report highlighted that debt can serve as a powerful tool for governments to promote development, but when the scale of debt is too large or the cost too high, it becomes a burden that hinders economic growth. In 2024, 61 developing countries will use more than 10% of their fiscal revenue to repay debt interest.
The report emphasized the urgent need for reform in the international financial architecture to help countries, especially developing ones, finance future development in a more sustainable and affordable manner.
United Nations Conference on Trade and Development