Public Debt Globally Hits Record $29 Trillion Says UN Finance Team
The global public debt has escalated to a record $92 trillion in the year 2022 as governments made borrowings to fight against crises like the Covid-19 pandemic, especially with developing countries that have acutely felt the burden of the same, a United Nations report added.
National and international debts globally have increased over five times in the previous two decades, outstripping the economic growth rate, with GDP only tripling since 2002, according to a report released on Wednesday at the pre-run of the G20 meeting for central bank governors and finance ministers between 14th to 18th July.
“Markets may seem not be suffering – yet. But people are.”
Antonio Guterres, Secretary General, United Nations, said to the reporters.
“Some of the poorest countries in the world are being forced into a choice between servicing their debt or servicing their people.”
Developing countries owe almost 30% of global public debt, out of which India, China, and Brazil account for 70%. A total of 59 developing countries have been facing a debt-GDP ratio which is above 60%, a percentage that indicates great levels of debt.
“Debt has been translating into a substantial burden for developing countries due to limited access to financing, rising borrowing cost, currency devaluations, and sluggish growth,”
added the UN report.
The international financial architecture has furthermore made financing for developing countries even more expensive and inadequate, the UN also added, referring to the net interest for debt payment that has exceeded by 10% of revenues for fifty developing economies globally.
“In Africa, the amount spent on interest payments is higher than spending on either education or health,”
the report also added.
“Countries are facing the impossible choice of servicing their debt or serving their people.”
Banks, bondholders, and other private creditors depict 62% of the total international public debts of developing countries.
Read More:
Share this article:
