Total external debt of low- and middle-income countries climbed 5.3% to US$7.8 trillion during 2018, World Bank (WB) reported on Wednesday (10/2). While, the net debt flows (gross disbursements minus principal payments) from external creditors tumbled 28% to US$529 billion.

Although on average the external debt burden of low- and middle-income countries was moderate, several countries have been on a deteriorating debt trajectory since 2009, the report indicates. The share of low- and middle-income countries with debt-to-GNI ratios below 30% has shrunk to 25%, down from 42% ten years ago. Similarly, the share of countries with high debt-to-export ratios has climbed.

The Bank also seen, debt stocks were driven up by a 15% jump in China, fueled by investor appetite for Renminbi-denominated assets. Excluding the ten largest borrowers (Argentina, Brazil, China, India, Indonesia, Mexico, the Russian Federation, South Africa, Thailand, and Turkey), external debt stocks rose 4%.