As China pulls back, poorest nations face 'slow-burning' debt crisis

Situation could have long-term global consequences, World Bank chief economist says

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Children attend school in Lagos, Nigeria. High debt burdens put funding for education at risk in lower-income countries. (Photo by Satoshi Shimoda)

SATOSHI SHIMODA

TOKYO -- Developing countries are under rising pressure from their debt loads as new flows of credit from China and the private sector dry up.

Low- and middle-income countries' balance of external debt reached $8.84 trillion in 2023, according to the World Bank. They spent a record $1.36 trillion that year on debt servicing, but their stock of debt still increased because the interest burden rose.

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