Developing Countries External Debt Surge

Developing countries' external debt reached a record $9.4 trillion in 2025, driven by private financing and bond issuance. The World Bank warns that high debt burdens threaten essential investments, with IDA-eligible countries facing the highest borrowing costs.

Developing countries' external debt reached a record $9.4 trillion in 2025, according to the World Bank. The increase was driven by higher borrowing costs and a significant rise in bond issuance, particularly among countries eligible for concessional financing.

Nigeria is facing its highest borrowing costs since 1989, with external debt reaching $9.4 trillion in 2025, according to the World Bank. The country owed the International Development Association approximately $19.12 billion as of June 30, 2026.