The World Bank recently published a report highlighting an alarming situation: the external debt of low- and middle-income countries reached $9 trillion in 2023, marking an increase of 8% compared to 2020. This information was relayed by our colleagues from Sud Quotidien.
This report highlights the growing challenges for vulnerable economies, including nations eligible for financing from the International Development Association (IDA). These countries have experienced growth in their external debt which now stands at $1,100 billion, an increase of nearly 18% since 2020. It should be noted that this increase is twice as rapid as that of countries with middle income.
In addition to the growing debt, the burden of interest payments has also reached worrying levels. For developing countries, these payments jumped 33% between 2020 and 2023, reaching $406 billion. This situation puts considerable pressure on national budgets, often to the detriment of essential investments in critical areas such as health, education or the environment.
In the case of IDA countries, the situation is even more critical. The report notes that these countries currently devote 6% of their export earnings to debt service, a figure not seen since 1999 and sometimes reaching up to 38% in certain specific cases, which accentuates their economic fragility.
In 2023, the poorest countries had to repay an exceptional amount of $96.2 billion in their external debt, including $34.6 billion for interest payments alone. The World Bank describes this level of reimbursement as unprecedented, highlighting the serious economic and social repercussions it generates.
Faced with the global debt crisis, the World Bank is calling for increased mobilization of the international community to help the most affected countries. The current situation, reported by the Sud Quotidien website, reveals a crisis of unprecedented scale, threatening to compromise progress towards sustainable development and amplify global inequalities.
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