Published on 5 Apr 2024 on Insider Monkey via Yahoo Finance

20 Countries Most in Debt to China

In this article, we look at 20 countries most in debt to China. If you want to skip our detailed analysis, you can go directly to the 5 Countries Most in Debt to China.

The Situation of International External Debt

The external debt situation for low and middle-income countries (LMICs) has changed drastically over the last decade and is out-pacing the economic growth of these countries, thereby raising serious concerns. The situation is even worse for poor countries where external debt stocks have risen at the fastest pace as compared to other LMICs. Moreover, the debt vulnerabilities exacerbated in many low-income countries eligible for International Development Association (IDA) resources. The debt accumulation in these countries has increased to the extent that more than 60% of IDA-eligible countries were marked to be at high risk of debt distress in 2023. According to the International Debt Report 2023 by the World Bank, the external debt stocks for LMICs decreased marginally by 3.4% from $9.3 trillion in 2021 to $9.0 trillion in 2022. However, it increased by 2.7% for IDA-eligible countries during the same year, reaching an all-time high of $1.1 trillion. To read more about highly indebted regions you can look at 20 Countries Most in Debt to IMF and 15 Cities with the Highest Debt in the US.