Betul Yuruk
12 July 2023•Update: 12 July 2023
UNITED NATIONS
Global public debt increased to $92 trillion in 2022, according to a new UN report.
Cascading crises in recent years triggered a sharp acceleration of this trend, said the UN Conference on Trade and Development in its report launched on Wednesday.
Global public debt has increased more than fivefold since 2000, outpacing global domestic product, which tripled over the same time.
The number of countries facing high levels of debt has risen to 59 last year which stood at 22 in 2011, according to the report.
"Countries are facing the impossible choice of servicing their debt or serving their people," said the report.
The report pointed out inequalities in the international financial architecture and said that developing countries are more exposed to external shocks due to borrowing in foreign currencies.
Almost 30% of global public debt is owed by developing countries and 70% of which belongs to China, India and Brazil, said the report.
"Half our world is sinking into a development disaster, fueled by a crushing debt crisis," UN Secretary-General Antonio Guterres told reporters at UN headquarters in New York.
"Some 3.3 billion people – almost half of humanity – live in countries that spend more on debt interest payments than on education or health."
Guterres said that African countries pay four times more for borrowing than the US and eight times more than the wealthiest European economies.
He said that "outdated" global financial system reflects the colonial power dynamics of the era and has not fulfilled its mandate and called for reforms ahead of the G20 Summit of finance ministers on July 14-18.
