Developing countries’ debts mount as pandemic and strong dollar hit finances

Developing countries\’ debt rose to a record high of $98tn in the last year, according to the Institute of International Finance. This is due to currency devaluation, the US Federal Reserve\’s aggressive interest rate increases, and the strength of the dollar against most emerging market currencies. Countries like Pakistan and Egypt are at high risk of default, and Sri Lanka and Ghana have already defaulted on external debts. Advanced economies\’ debt declined by almost $6tn to $201tn, lowering the global debt burden to below $300tn. This trend of rising debt and deficits is concerning, and the situation could worsen if the dollar remains strong. To stay up to date on the latest news, follow my Facebook group!

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