World of Debt Report 2025, Key Highlights and Reforms

Explore the "World of Debt Report 2025" by UNCTAD, detailing how global public debt reached a record $102 trillion in 2024, disproportionately burdening developing nations—$31 trillion of that—and causing many to spend more on interest than on health or education.

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Context: Recently, the World of Debt Report 2025 was released by the United Nations Conference on Trade and Development (UNCTAD).

Key Highlights from UNCTAD’s A World of Debt Report 2025

Global debt reaches record high: Total public debt surged to US $102 trillion in 2024, up from US $97 trillion in 2023.
Developing nations disproportionately burdened: Low- and middle-income countries now hold US $31 trillion, nearly one-third of global debt, and their debt has doubled in growth rate compared to advanced economies since 2010.
Sky-high interest payments crowd out development: Developing countries paid a record US $921 billion in net interest in 2024—a 10% increase year-over-year.
- A total of 61 countries spent over 10% of their government revenue just servicing interest.
Debt servicing exceeds social spending: Approximately 4 billion people live in countries that spend more on interest payments than on health or education.

Urgent International Financial Reforms Needed

UNCTAD urges a comprehensive reform agenda to address the crisis:

Strengthen the global financial architecture to be more inclusive and development-focused.
Improve liquidity mechanisms in crises.
Establish robust debt workout processes.
Expand concessional finance and technical assistance for debt management