Developing countries paid more in debt service in 2025 — World Bank

For the third consecutive year, developing economies paid more in debt service than they received in new financing, reaching a 50-year high in debt outflows during 2022–2024, according to the World Bank’s 2025 Year in Review.

Despite these financial pressures, the World Bank noted that the global economy performed better than many had anticipated, particularly in developing countries. Global growth surpassed forecasts even amid tariffs and trade tensions, with some relief coming from reopened bond markets and easing interest rates. Decreasing trade-policy uncertainty and stable energy markets also contributed to the resilience.

“Forecasters now anticipate growth of about 2.7 per cent for this year, generally in line with expectations at the start of 2025. This resilience was fueled by rapid adaptation, including the shifting of supply chains, fast adoption of digital technologies like artificial intelligence (AI), and diversified markets,” the report stated.

The World Bank emphasized that job creation remained central to development efforts. “Jobs are not only the surest path out of poverty, but also provide dignity, hope, and stability. They build self-sufficient economies, reduce humanitarian need, and drive demand for goods, helping ensure that development is both sustainable and thriving,” it added.

The report also highlighted the impact of demographic shifts. Over the next decade, 1.2 billion young people in developing countries will reach working age, shaping the next century. Ensuring sufficient employment opportunities for them is critical, as a lack of jobs could fuel instability, unrest, and mass migration, with global economic implications.

The World Bank continues to work with countries to create conditions for progress, opportunity, and resilience, focusing on employment as a key lever for sustainable development.

BY TIMES REPORTER

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