New York, July 12 (BNA): Global public debt rose to a record $92 trillion in 2022 as governments borrowed to confront crises, such as the COVID-19 pandemic, as developing countries felt the burden sharply, a United Nations report said. .
Domestic and external debt around the world have increased more than fivefold in the past two decades, outpacing the rate of economic growth, with gross domestic product only tripling since 2002, according to Wednesday’s report, released in the run-up to the G20 fiscal meeting.
Developing countries owe nearly 30% of the global public debt, 70% of which is represented by China, India and Brazil. Fifty-nine developing countries face a debt-to-GDP ratio above 60% — a threshold that indicates high levels of debt, according to Reuters.
The UN report added that “debt has turned into a major burden for developing countries due to limited access to financing, high borrowing costs, currency depreciation, and slow growth.”
Moreover, the international financial architecture has made access to finance for developing countries insufficient and costly, the United Nations said, noting that net interest debt payments exceed 10% of revenues for 50 emerging economies worldwide.
The report found that “in Africa, the amount spent on interest payments is higher than on education or health,” with 3.3 billion people living in countries that spend more on debt interest payments than on health or education.
“Countries face the impossible choice of servicing their debts or serving their people.”
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