Global Bank Warns of Debt Surge Impact on Development

The Global Bank highlighted rising competition between debt repayment and financing for national development priorities, emphasizing the challenge as millions of citizens seek better access to public services and economic opportunities.

The report noted that the increase was four times the average growth between 2022 and 2024, underscoring the heightened financial strain on developing economies amid elevated borrowing costs.

The World Bank warned that higher borrowing costs have left developing countries with heavier repayment obligations, limiting fiscal space for long-term development projects.

The report also indicated that borrowing from private creditors contributed significantly to the debt increase, with public entity bond issuance reaching $251 billion in 2025, the highest in five years.