Developing Countries' Debt Hits Record $9.4 Trillion, Poorest Under Greatest Strain: World Bank

According to the World Bank, developing countries' debt reached a record $9.4 trillion last year. Among them, the poorest countries are having to pay interest at the highest rate since the late 1980s.

The World Bank's annual International Debt Report said rising foreign debt repayment costs mean many governments are unable to invest for the future.

According to the report, developing countries' debt rose by 5.5 percent last year, the fastest increase in four years, driven mainly by rapid growth in private-sector borrowing.

The World Bank's chief statistician, Haishan Fu, said access to international finance has increased but the cost of that finance has not fallen. Low- and middle-income countries are borrowing more than before, paying more interest, and in many cases are left with less money for long-term development, she said.

According to the report, the poorest countries — those eligible for concessional loans from the World Bank — are paying an average interest rate of 8.2 percent on new borrowing, the highest since the late 1980s.

The report cited recent borrowing by Laos at 11.5 percent interest, the Republic of Congo at 13.88 percent and Kenya at 9.2 percent as examples.

Preliminary data for 2026 show debt flows continuing at a rapid pace, while high interest rates have also persisted as the cost of global finance has risen, the report said.

Analysing the relationship between high debt burdens and the ability to spend on domestic priority sectors, the World Bank found that global crises have had a much greater impact on food availability in heavily indebted countries.

The report said food and nutrition security is a clear example of that relationship, showing how debt burdens during global crises can be closely linked to a reduced ability to afford healthy food.