The World Bank issued a warning on January 31 2026 highlighting rising debt risks among low income countries as borrowing costs increase and economic growth remains uneven. In its latest report the institution said many vulnerable economies face mounting pressure from high interest payments limited fiscal space and external shocks.
According to the analysis global inflation tighter financial conditions and currency depreciation have increased repayment burdens for poorer nations. Several countries are spending more on debt servicing than on health education or social protection. The World Bank urged coordinated international action to prevent a new wave of debt crises.
Officials called for debt restructuring improved transparency and stronger domestic revenue systems. They also emphasized the role of multilateral lenders in providing concessional financing and technical support.
Development experts warned that without relief measures rising debt could reverse gains in poverty reduction and development. The report stressed that sustainable growth requires balanced fiscal policies and international cooperation to support the most vulnerable economies.
Leave a comment