G20 faces a debt crisis challenge
September 4, 2023 - Soaring debt gripping developing world nations, as debt-to-GDP ratios rise to unprecedented levels, will be a core topic during the G20 summit in India.
The world’s 20 major countries currently account for 80% of global gross domestic production (GDP) and 75% of international trade.
India’s Prime Minister Narendra Modi has emphasized addressing the challenges posed by debt distress at the two-day G20 summit in Delhi from September 9, especially for nations in the Global South.
“The debt crisis is a matter of great concern for the world, especially developing countries,” Modi said. “Countries that are going through debt crisis or have gone through it have begun to give greater importance to financial discipline,” Modi said.
In July, the United Nations warned that 3.3 billion people live in countries where debt interest payments are higher than expenditure on health or education, as global public debt reached an all-time high of $92 trillion in 2022.
Under its G20 presidency, India has consistently highlighted the need for a framework on debt restructuring to help countries facing mounting debt problems.