Developing Countries Paid Record $1.4 Trillion on Foreign Debt in 2023

December 3, 2024--Financial Squeeze on Poorest Economies Tightened as Private Creditors Retreated
Developing countries spent a record $1.4 trillion to service their foreign debt as their interest costs climbed to a 20-year high in 2023, the World Bank's latest International Debt Report shows. Interest payments surged by nearly a third to $406 billion, squeezing the budgets of many countries in critical areas such as health, education, and the environment.

The financial strain was fiercest for the poorest and most vulnerable countries-those eligible to borrow from the World Bank’s International Development Association (IDA), the data show. These countries paid a record $96.2 billion to service their debt in 2023.