7
/10 Severity
Developing World Debt Trap Crisis
debt crisis
Jan 2020
Ongoing
GDP Impact
-2.0%
Countries Affected
60
Duration
71.874941807584+ months
Recovery
- months
Description
Mounting debt crisis in developing nations due to COVID borrowing, rising interest rates, and dollar strength. IMF/World Bank conditionality constraining policy options.
Causes
COVID borrowing, Fed rate hikes, strong dollar, commodity price volatility, Chinese Belt and Road debt, IMF conditionality.
Consequences
Sri Lanka default, Ghana restructuring, Zambia crisis, austerity measures, social unrest, sovereignty concerns.
Quick Facts
- Event Type
- debt crisis
- Start Date
- Jan 01, 2020
- Peak Year
- 2020