According to estimates by the United Nations Conference on Trade and Development (UNCTAD), the total volume of public debt will reach USD 97 trillion in 2023 (USD 5.6 trillion more than in 2022).

Experts note significant regional disparities. In 2023, the public debt of developing countries reached USD 29 trillion, or 30% of the global total (an increase of 16% between 2010 and 2023). More than 70% of developing countries' debt is accounted for by countries in Asia and Oceania, while Latin America and the Caribbean account for 17% and Africa for 7%. At the same time, in more than 50% of countries, public debt has decreased relative to GDP. The median public debt-to-GDP ratio fell from a peak of 60.4% in 2020 to 54.7% in 2023. The decline was driven by high global inflation and real GDP growth.

As experts note, the current international financial architecture worsens the financial situation of developing countries. Limited access to external financing, the need to borrow from more unstable, expensive sources make them more vulnerable to external shocks.

In 2022, the external public debt of developing countries reached USD 3.2 trillion. For 50% of countries, external public debt amounted to at least 28.4% of GDP and 92.4% of their exports. More than 50% of developing countries allocate at least 6.3% of their export revenues to servicing external public debt. In 2022, the share of borrowing from private sources amounted to 61% of the total external public debt of developing countries.

Growing dependence on private creditors creates three main problems.

• Dependence on a wide range of creditors with different interests complicates the debt restructuring process and increases the cost of resolving debt crises.
• Private lending is unstable and subject to rapid changes. In 2022, developing countries repaid $49 billion more to external creditors than they received.
• The cost of external borrowing from private sources is higher. Developing regions borrow at rates that are 2-4 times higher than in the United States and 6-12 times higher than in Germany.