Developing states debt hit record USD9.4trn in 2025: World Bank

External borrowing by low- and middle-income countries climbed 5.5 percent in 2025 to USD 9.4 trillion, a new high, according to the World Bank’s annual debt report cited by Business Recorder. The increase was the steepest since 2021, while borrowing through international bond markets continued into 2026.

The World Bank said the poorest developing countries faced average rates of 8.2 percent on new private-credit commitments and 9.4 percent on new bonds. Across low- and middle-income countries, debt principal and interest payments reached USD 1.4 trillion in 2025, the fifth yearly rise in a row. The report warned that heavier repayment costs could constrain spending on development and leave economies more exposed to shocks.