World Bank economist fears repeat of '80s debt crises

Inflation and weak growth put emerging markets at risk, says Ayhan Kose

High inflation and interest rate hikes by developed nations could plunge indebted emerging economies into a debt crisis, a World Bank economist warns. © Reuters

KOSUKE TAKAMI, Nikkei staff writer

August 22, 2022 03:03 JST

WASHINGTON -- As central banks tighten monetary policy to tame galloping inflation, a rapid rise in interest rates will put heavily indebted emerging economies in a precarious position, Ayhan Kose, director of the World Bank's Prospects Group, told Nikkei.