The President of the United Nations General Assembly has sounded the alarm over the mounting debt burden of developing nations, revealing that public debt in these countries reached $31 trillion in 2024.
Addressing delegates at a UNCTAD session, Assembly President Annalena Baerbock highlighted that this level of indebtedness is “stifling growth and undermining development.” She explained that many low- and middle-income nations are allocating substantial portions of their revenues to debt servicing, leaving little wiggle room for spending on health, education, and infrastructure.
The revelation comes amid growing concerns about global financial stability, as rising interest rates and inflationary pressures exacerbate the burdens of external borrowing. Analysts note that in 2023 alone, developing countries paid roughly $1.4 trillion in interest and principal repayments, marking one of the highest debt servicing years on record.
Baerbock called on international creditors, multilateral banks, and donor nations to adopt bold debt relief mechanisms, restructuring frameworks, and more concessional lending to ease the burden. She urged that unless decisive action is taken, the debt overhang could undo decades of progress toward poverty reduction and sustainable development.
