UN report highlights record global debt, impact on developing economies

Global public debt soared to a record $97 trillion in 2023, with developing countries shouldering a third of this burden, according to a 2024 UN Conference on Trade and Development (UNCTAD) report.

Titled “A World of Debt: A Growing Burden to Global Prosperity,” the report underscores the dramatic rise in debt from $51 trillion in 2010.

Ghana, grappling with

Read full articlesubstantial debt, is currently negotiating with external creditors to restructure over $5 billion in loans following a domestic debt exchange that destabilized its economy. By the end of 2022, Ghana's debt-to-GDP ratio had peaked at nearly 90%.

The report reveals that Africa's public debt is growing faster than its GDP, jumping from 38% to over 60% between 2010 and 2023. High external borrowing costs exacerbate this issue, with African nations paying an average interest rate of 9.8%, compared to Germany's 0.8%.

UNCTAD calls for reforms in the international financial system to alleviate these burdens and promote equitable growth.