Developing countries face record debt outflows and rising risks

Developing countries experienced record debt outflows of $741 billion between 2022 and 2024, exceeding new financing by the largest margin in 50 years. This period saw rising interest costs and a record $90 billion in debt restructurings in 2024. Despite some market improvements, developing nations face mounting risks and high borrowing costs. The World Bank was the largest net provider of financing to the most vulnerable countries, while official bilateral creditors reduced their lending.