Low-income countries spend more on debt repayment than development

Low and middle-income countries are spending more on external debt repayment than they receive for development, according to the World Bank. This negative balance reached $205.1 billion in 2024, impacting essential public spending on health, education, and infrastructure, and hindering growth prospects. The situation is particularly concerning for the 78 most vulnerable countries, where private creditors now hold a rapidly increasing share of debt, with more expensive and shorter-term loans.