Developing countries: External debt reaches a record $9.4 trillion

The World Bank has just released the figures. In its International Debt Report 2026, it reveals that the external debt of developing countries jumped by 5.5% in 2025, reaching $9.4 trillion. "This is the fastest growth since 2021 and almost four times the average recorded over the 2022-2024 period," it stated in a press release.

The World Bank points out, however, that while access to international financing has improved, its cost remains high. The heavy debt burden of the poorest countries thus risks jeopardizing essential investments in human capital.

She explains that borrowing from private creditors has increased sharply, while bond issuance by public entities has risen by nearly 35%. The latter reached its highest level in five years, at $251 billion, thanks to the reopening of markets to many developing countries.

External debt has grown even more rapidly in the most vulnerable countries. It increased by 8.1%, reaching $1.3 trillion in countries eligible for concessional financing from the International Development Association (IDA).

"The return of private lending to low- and middle-income countries is good news, but these countries are borrowing more, paying more, and in many cases, devoting fewer resources to long-term development," notes Haishan Fu, chief statistician at the World Bank Group.

Furthermore, debt repayment and interest payment pressures remained high, in a context marked by high global interest rates. The World Bank indicates that low- and middle-income countries spent $1.4 trillion on principal and interest payments in 2025, an increase of 1.9%.

At the same time, payments to bondholders reached $363 billion. This increase is partly explained by debt buybacks and early repayments financed by new bond issues.