Developing countries' debt hit record $9.4 trillion in 2025: World Bank

The World Bank reported that developing countries' debt reached a record $9.4 trillion in 2025, with severe debt-service pressures exacerbated by elevated global interest rates. Low- and middle-income countries paid $1.4 trillion in loan and interest repayments in 2025, marking a fifth consecutive annual increase. Between 2022 and 2025, these countries paid $436 billion more in debt servicing than they received in new financing. The report warns that high debt levels leave developing countries constrained in their response to global economic shocks, including the pandemic, inflation from wars in Ukraine and Iran, and disrupted global trade due to US tariffs.