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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