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World Bank’s Latest International Debt Report

This is a comprehensive mind map with below hierarchical information:-
World Bank’s Latest International Debt Report
December 2023 News
Release Date
December 13, 2023
Record Debt Service
$443.5 billion in 2022
50th Anniversary
International Debt Report
When
Report Period
Data as of end-2022
Why
Global Interest Rate Surge
Biggest in four decades
Debt Vulnerabilities
Intensified in developing countries
What/Highlights
Debt Service Payments
Include principal and interest
Debt Servicing Cost Increase
5% over previous year
IDA Eligible Countries
Paid $88.9 billion in 2022
Interest Payments Quadrupled
$23.6 billion in 2022
Debt Servicing Costs Projection
Expected to increase by 39%
Sovereign Defaults
18 in 10 countries over three years
Low-Income Countries
60% at high risk of debt distress
Variable Interest Rates Debt
More than a third of external debt
DSSI Accumulated Costs
Principal, interest, and fees
US Dollar Strength
Increases payment costs
Financing Options
Decreased in 2022
Private Creditors
Reduced involvement
World Bank Support
Provided significant low-cost financing
IDR 50th Edition
Expanded analytical framework
Indian Context
Resilient Growth
7.2% in FY22/23
Global Challenges
High interest rates, geopolitical tensions
GDP Forecast FY23/24
Expected to be 6.3%
Inflation
Spiked to 7.8% in July
Fiscal Consolidation
Deficit projected to decline
External Account
Current deficit to narrow to 1.4%
Where
Developing and Poor Countries
Global scope
Who
Indermit Gill
World Bank Group Chief Economist
Haishan Fu
Chief Statistician, World Bank
How
Debt Transparency
Essential for management and sustainability
Data Role
Guides debt restructuring
Public Borrowing
Needs accountable, rules-based practices
Significance
Insight into Global Debt
Over 50 years of data
Economic Stability Promotion
Through data and management tools
Challenges
High Debt Levels
Lead to economic crises
Investment in Critical Areas
Diverted due to debt servicing
Way Forward
Coordinated Action
By governments, creditors, and institutions
Debt Sustainability Tools
Need for improvement
Swift Restructuring Arrangements
To prevent economic downturns
Debt Management Transparency
Key to avoiding crises

The World Bank’s International Debt Report of December 2023 revealed a record high in debt service payments by developing countries, totaling $443.5 billion in 2022, influenced by the largest surge in global interest rates in four decades. This surge has significantly affected developing nations, with debt service payments increasing by 5% from the previous year. The report, marking its 50th edition, highlights the increasing vulnerabilities in developing countries, including an alarming number of sovereign defaults and the high risk of debt distress in low-income countries. It emphasizes the importance of debt transparency and management for economic stability and sustainable growth. In the context of India, despite global challenges, the country has shown resilient growth, with a 7.2% growth rate in FY22/23 and an expected GDP growth of 6.3% for FY23/24, albeit with concerns over inflation and fiscal consolidation challenges.

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