The United Nations Trade and Development Report Update (April 2024), says governments of developing countries are struggling under increasing debt burdens.
The report, published on the UN Trade and Development website, explained that the debt crisis is draining valuable public resources from the affected developing countries.
It added that the development had forced the affected governments to pay $50 billion to creditors in 2022, instead of channelling such financial resources for the developing of its people.
Debt dynamics in developing countries
The report revealed that high global interest rates have compounded the problem for developing countries,with currency depreciation making foreign-denominated debt more costly.
According to the report, Africa’s economy is projected to grow at 3.0% in 2024, but armed conflicts and climate impacts pose significant challenges in several countries.
” Meanwhile, the continent’s largest economies – Nigeria, Egypt and South Africa – are underperforming, affecting overall prospects,” it added.
The report states other continents will have its fair share of economic challenges.
The updated report forecasts a global economic growth to 2.6% in 2024
