The World Bank (WB) has warned against a fast-rising wave of debts in emerging and developing countries now standing at US$55 trillion. WB then urges policymakers to act promptly to strengthen their economic policies and make them less vulnerable to financial shocks.
In a new analysis titled Global Waves of Debt, the Bank concluded that private and public debts in emerging and developing economies (EMDEs) by the end of 2018, marked an eight-year surge that has been the largest, fastest, and most broad-based in nearly five decades.
While the net debt flows (gross disbursements minus principal payments) from external creditors tumbled 28 percent 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.
