News from 2018-11-20 / KfW Research

Low-income country debt: the worry lines are not easing off

Low-income countries (LICs) have experienced significant debt growth in past years, which poses an increasing risk. What is becoming apparent is that the LICs are not sufficiently capable of using their debt for productivity-enhancing investment. The result is insufficient economic progress. As a consequence, debt distress in these countries has risen considerably. The debt sustainability of these countries therefore needs to be anticipated more carefully and adapted debt instruments need to be developed for LICs.

Low-income country debt: the worry lines are not easing off

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Economic Research

Economic Research

Economic development in Germany and around the world, studies on topics relevant to society such as environmental and climate protection, demography, globalisation, innovation and sustainability, impact of KfW promotional programmes.