Developing international locations’ external debt has surged 5.5% to a record $9.4 trillion in 2025, the quickest tempo since 2021, in response to the World Bank Group’s International Debt Report 2026.
The report famous that though entry to worldwide finance has improved, the worth of finance has not, with debt burdens within the poorest nations threatening important investments in individuals.
External debt grew 8.1% to $1.3 trillion in probably the most susceptible international locations eligible for concessional financing from the World Bank’s International Development Association, IDA.
World Bank Group Chief Statistician, Haishan Fu, noticed that international locations are borrowing extra, paying extra, and in lots of circumstances leaving much less for long-term growth.
“Managing debt responsibly means giving everyone—including future generations—a chance to thrive,” mentioned Haishan, the Director of Development Data.
As of August, over 10 nations had exceeded their full-year 2025 issuance, whereas some returned to worldwide markets, as low- and middle-income international locations proceed to hunt bond financing regardless of the excessive prices.
Such international locations paid $1.4 trillion in principal and curiosity in 2025, up 1.9%, whereas funds to bondholders climbed to $363 billion, partly reflecting debt buybacks and prepayments financed by way of new bond points.
Between 2022 and 2025, developing international locations paid $436 billion extra in debt service than they obtained in new financing. However, internet debt flows shifted in 2025, recording a internet influx of $45 billion for developing nations.
