Developing countries spend record amount on foreign debt

Developing countries across the world collectively spent a record $1.4tn to meet their foreign debt obligations  in 2023, according to Reuters.

The World Bank published the data on December 3rd, citing the pandemic, combined with depreciating currencies and uncertainty in global markets, as reasons for the major increase.

While the World Bank Group’s chief economist, Indermit Gill, said these loans had been a “lifeline” for poor economies, the report noted that last year more money was being paid to creditors than lenders were investing in developing nations, according to EuroNews.

With more secure loans yielding handsome returns, investors felt less of an incentive to lend to poorer nations.

Reuters and EuroNews