The United Nations Conference on Trade and Development (UNCTAD) released a report pointing out that in 2024, global public debt increased from $97 trillion in 2023 to $102 trillion (approximately RM431.26 trillion), reaching a historic high, with developing countries being the most severely affected.
In its latest edition of the 'World of Debt' report, UNCTAD noted that since 2010, the growth rate of public debt in developing countries has been twice that of advanced economies, reaching $31 trillion in 2024. In addition, developing countries bear excessively high debt costs, with debt interest payments in 2024 reaching $921 billion, a 10% increase over 2023.
The report stated that debt can serve as a powerful tool for governments to promote development, but when debt levels are too high or costs too burdensome, it instead becomes an obstacle to economic growth. In 2024, 61 developing countries will spend more than 10% of their fiscal revenue on debt interest payments.
The report emphasizes that the international financial architecture urgently needs reform to help all countries, especially developing nations, raise development funds in a more sustainable and affordable way in the future.