World Bank warns that poorest countries face increasing risk of debt crisis

<p>The World Bank says developing countries spent a record $443.5 billion to service external debt in 2022 and that will rise 10% this year and the next. For the poorest countries, that's $88.9 billion with the total to surge by 40% in 2023-24, they say.</p><p>Those debt burdens threaten to swap the capacity to repay and could lead to a debt crisis.</p><p>The best thing that could happen would be for the Fed to start cutting rates as a prolonged period of high rates would be 'disasterous' for emerging markets.</p><p>It's rare for the smallest countries to cause ripples in the larger financial system but those places are an important source of global growth and resource demand for the decades ahead. </p>

This article was written by Adam Button at www.forexlive.com.