In this video we look at the rising external debt issued by many developing and emerging countries and assess some of potential benefits and drawbacks.
Government debt as a share of GDP in emerging economies from 2001 to 2019 has risen from 27% in 2008 to 55% now. A growing number of African countries have issued Euro Bonds, totalling $115 billion at the end of 2019. Large economies such as Nigeria and South Africa have been followed by Ivory Coast, Angola, Kenya and Ghana.
Case for developing countries borrowing from overseas to finance their development
Risks from following a debt-led growth model
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