GlobalEconomicSince 2020Curatedhigh confidence

Sovereign Debt Distress

Dozens of countries now spend more on debt service than on health or education.

Severity score

55.6

Severe · default weighting

Trajectory

Worsening

What this is

A wave of low and middle income countries face unsustainable debt burdens following pandemic borrowing and rising global interest rates. Restructuring processes are slow and fragmented, and the interim cost is measured in cancelled clinics, teachers and infrastructure.

Score breakdown

Loss of life

30

Direct and attributable mortality, normalised across annual and cumulative tolls.

Lives negatively impacted

88

People displaced, injured, food-insecure, exposed or otherwise materially harmed.

Financial cost

84

Direct damage, lost output and health-system spend attributable to the event.

Environmental impact

4

Emissions, habitat and biodiversity loss, contamination and irreversibility.

Trajectory

72

Whether the situation is escalating, and how much worse it is plausibly getting.