Developing Nations' Debt Crisis: External Borrowing Hits Record $9.4 Trillion

The external debt of developing countries has reached an unprecedented $9.4 trillion in 2025, raising fresh concerns about global financial stability and the economic future of low- and middle-income nations. According to the World Bank's International Debt Report 2026, external debt increased by 5.5% compared with the previous year, marking its fastest annual rise since 2021. In this episode, we examine the growing reliance on private creditors and international bond markets, the rising cost of borrowing, and the mounting pressure of debt repayments on developing economies. The report reveals that the poorest countries paid an average of 8.2% on new private borrowing, the highest level since 1989. Meanwhile, developing countries collectively paid $1.4 trillion in principal and interest during 2025. As governments struggle to balance debt obligations with spending on healthcare, education, infrastructure and employment, questions are growing over whether international financing is supporting development or deepening economic vulnerabilities. SOURCE & ATTRIBUTION DISCLAIMER This episode is based on reporting and information published by the World Bank, Reuters and other established news organisations. We do not claim ownership of original news reporting, articles, photographs or third-party footage. The podcast is voiced by Souha and is not AI-generated. Information and statements are attributed to their respective sources. The views expressed by individuals and organisations discussed do not necessarily represent our own. Our purpose is to report international developments, promote news awareness and provide informative context. Hosted on Acast. See acast.com/privacy for more information.