Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Da Silva: What is happening in Gaza is not a war, it is a genocide
Da Silva: Even the Jewish people do not want this war; it is revenge by a government against the possibility of establishing a Palestinian state
Brazilian President Lula da Silva: What we are seeing is not a war between two armies. [What we have is a] completely professional army that is killing women and children in the Gaza Strip.
Hamas: We affirm our readiness to immediately begin a round of indirect negotiations to reach an agreement on the points of contention
Hamas: We welcome the continued Qatari and Egyptian efforts to end the war waged by the Zionist occupation against our people
Al Mayadeen's correspondent: Israeli occupation forces blew up Noura Al-Kaabi Hospital, designated for kidney dialysis patients, in the northern Gaza Strip
Al Mayadeen's correspondent: Israeli drone targets a car on the Ayta al-Shaab-Debel road in southern Lebanon
Yemeni Armed Forces Spokesperson Yahya Saree: The remaining airlines that have not yet complied with the ban are urged to take this into serious consideration to ensure the safety of their aircraft and passengers
Yemeni Armed Forces Spokesperson Yahya Saree: The YAF, after successfully imposing a partial ban on air traffic at Lydd Airport, are now working to impose a full ban on air traffic at the aforementioned airport in the coming period
Yemeni Armed Forces Spokesperson Yahya Saree: YAF's UAV Unit carried out three military operations targeting three vital Israeli sites in the occupied Palestinian areas of Yafa, Isdud, and Umm al-Rashrash, using three drones

Global debt hits record $92tn in 2022, burdening poor nations: UN

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Jul 2023 00:08
3 Min Read

59 developing countries are facing a debt-to-GDP ratio above 60%, which indicates high levels of debt.

  • x
  • A poster at a bus shelter shows the national debt in Washington, DC in an undated photo (AFP)
    A poster at a bus shelter shows the national debt in Washington, DC in an undated photo (AFP)

A UN report on Wednesday revealed that global public debt reached a record $92 trillion in 2022 as a  result of overborrowing by governments to fight crises such as the COVID-19 pandemic - with developing nations feeling the brunt of it the most.

Both domestic and external debt worldwide increased more than five times in the last 20 years, which outstripped the rate of economic growth, showing that GDP only tripled since 2002, according to the report released ahead of the G20 finance ministers and central bank governors' meeting from July 14-18.

UN Secretary-General Antonio Guterres told reporters that "markets may seem not be suffering – yet. But people are," adding, "Some of the poorest countries in the world are being forced into a choice between servicing their debt, or serving their people."

30% of the global public debt is owed by developing nations. 59 developing countries are facing a debt-to-GDP ratio above 60%, which indicates high levels of debt.

Read next: Global economy under threat of debt default waves: Deutsche Bank

"Debt has been translating into a substantial burden for developing countries due to limited access to financing, rising borrowing costs, currency devaluations, and sluggish growth," the report added.

The UN argues that international financial systems made access to financing for developing countries both inadequate and expensive and continued to refer to net interest debt payments surpassing 10% of revenues for 50 emerging economies globally.

Related News

Global debt overshadows G20 finance chiefs meet

China proposes three-point plan to relieve indebted countries

"In Africa, the amount spent on interest payments is higher than spending on either education or health," the report stated as it discovered 3.3 billion people living in nations spending more on debt interest payments than on health or education.

"Countries are facing the impossible choice of servicing their debt or serving their people."

A G20 objective

The report also demonstrates that private creditors, like bondholders and banks, represent 62% of the developing countries' total external public debt.

In Africa, creditor participation jumped from 30% in 2010 to 44% in 2021, and Latin America recorded the highest ratio of private creditors holding external government debt at 74%.

According to the UN, multilateral lenders should expand financing with strategies such as the temporary suspension of International Monetary Fund (IMF) surcharges, which are commissions charged to borrowers using its credit lines extensively, and increased financing for countries in debt distress.

"To address the slow progress of the G20 Common Framework," a debt solution mechanism is also needed as per the report's authors but no further details were given.

The debt treatment framework was adopted originally by the G20 major economies and official creditors back in October 2020 and aims to include members such as China in debt relief.

Read more: IMF: China to contribute a third to global growth in 2023

Last month, IMF Executive Director for Russia Aleksei Mozhin told Sputnik that high public debt has become a serious threat to the economies of countries around the world, including Western ones, due to years of irresponsible monetary policies and budget plans. 

  • Global debt
  • economy
  • International Monetary Fund
  • United Nations

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS