Global public debt surged to $102 trillion in 2024, with developing countries responsible for nearly one-third, amounting to $31 trillion, according to a new report by the United Nations Conference on Trade and Development (UNCTAD). These nations faced a record $921 billion in interest payments, straining public finances and threatening essential services.
The latest World of Debt report, ahead of the Fourth International Conference on Financing for Development in Spain on June 30, highlights that rising debt, declining investment, and shrinking aid flows are undermining efforts to achieve the Sustainable Development Goals (SDGs), particularly in lower-income countries.
Since 2010, public debt in developing countries has grown twice as fast as in advanced economies. The report also points out that systemic inequalities in global financial systems have worsened the crisis. Since 2020, developing nations have had to borrow at interest rates two to four times higher than those available to the U.S.
UNCTAD’s data shows significant regional disparities: Asia and Oceania hold 24% of global public debt, Latin America and the Caribbean account for 5%, and Africa has just 2%.
The report also reveals that 61 developing countries now allocate at least 10% of their government revenues to interest payments, leaving limited resources for investment in health, education, or climate action.Â
Alarmingly, 3.4 billion people live in countries where interest payments exceed public spending on education or health. UNCTAD calls for a major reform of the international financial system to address these disparities.
