Global public debt reaches $92 trillion: UN
A total of 52 countries, almost 40% of the developing world, are in serious debt trouble
New York UN Secretary-General Antonio Guterres has presented the report, "A world of debt. A growing burden to global prosperity", and issued a grave warning as global public debt reached an all-time high of $92 trillion in 2022.
This five-fold surge in public debt levels since 2000, demands immediate action to tackle the escalating crisis affecting developing countries in particular.
Guterres stressed: "On average, African countries pay four times more for borrowing than the US and eight times more than the wealthiest European economies."
"A total of 52 countries, almost 40 per cent of the developing world, are in serious debt trouble."
This disparity in interest rates highlights the inherent inequality in the international financial system, burdening developing countries disproportionately.
Today, half of all developing nations spend a minimum of 7.4 per cent of their export revenues on servicing external public debt.
Of special concern is the rapid growth of interest payments, surpassing other public expenditures. It is alarming that some governments are compelled to spend more on servicing debt than on critical sectors like health and education.
Disturbingly, the report shows that at least 19 developing nations allocate more money to interest payments than education, and 45 allocate more to interest than health expenditure.