Developing-country external debt rises to a record $9.4 trillion

The World Bank's International Debt Report 2026 says external debt across low- and middle-income economies rose 5.5% to $9.4 trillion in 2025, the fastest annual increase since 2021. The poorest economies paid an average 8.2% on new private-creditor commitments, the highest since 1989, while new bonds averaged 9.4%. Developing countries paid $436 billion more in debt service than they received in new financing from 2022 through 2025; even though 2025 turned to a $45 billion net inflow, high rates can still crowd out investment in education, health, infrastructure and jobs.