Developing nations face mounting debt service payments in 2025, according to the World Bank's latest report. This marks the third consecutive year that developing economies have paid more in debt servicing than they've received in new financing, reaching a 50-year high in debt outflows during 2022-2024. Despite these challenges, the global economy has shown remarkable resilience, surpassing expectations even in the face of global trade wars and tariffs. Forecasters now anticipate growth of about 2.7% for this year, fueled by rapid adaptation, including supply chain shifts, digital technology adoption, and diversified markets.
The World Bank also highlights a critical demographic shift. Over the next decade, 1.2 billion young people in developing countries will reach working age, a potential catalyst for global economic growth. However, the report warns that a lack of job opportunities could lead to instability, unrest, and mass migration, with far-reaching consequences for all regions and economies. This demographic dividend, if not managed effectively, could become a source of global concern.
