World Bank’s Latest International Debt Report

Current Context: The World Bank's latest International Debt Report (IDR) released on December 13, 2023, paints a picture of a challenging debt landscape for developing countries.

• Here are some key takeaways:
• Record High Debt Service Payments: Developing countries spent a record $443.5 billion servicing their external public and publicly guaranteed debt in 2022. This represents a significant increase from previous years and is driven by rising interest rates, which are the highest they've been in four decades. This situation puts a strain on already tight budgets and could hinder development efforts.
• Debt Accumulation: Overall, external debt stocks in low- and middle-income countries rose to $9.3 trillion at the end of 2022. This represents a 7.5% increase from the previous year, reflecting a continued reliance on borrowing to finance development and cope with the pandemic's economic fallout.

Question:

Q.1 What was the record amount spent by developing countries on servicing external public debt in 2022?
a. $343.5 billion
b. $443.5 billion
c. $543.5 billion
d. $643.5 billion