Worldbank | Developing Countries’ External Debt Surges to Record $9.4 Trillion

The external debt of developing nations jumped 5.5% in 2025 to a historic peak of $9.4 trillion. This marks the fastest growth pace since 2021 and stands at roughly four times the average seen between 2022 and 2024. The surge is largely driven by a combination of compounding interest on existing loans, currency fluctuations, and high borrowing needs to cover slowing domestic growth.

Compliments of World Bank