Serrari Group

World Bank Urges Faster Economic Growth in Emerging Economies to Tackle Rising Debt

The World Bank issued a stark warning today, stressing the critical need for developing nations to accelerate their economic growth amidst mounting debt pressures. The institution’s latest report highlights a concerning trend: emerging market governments are facing significantly higher borrowing costs.

January saw international bond sales reach an unprecedented $47 billion, with countries like Saudi Arabia, Mexico, and Romania leading the charge. However, the issuance of bonds at notably higher interest rates, exemplified by Kenya’s recent bond sale at over 10%, underscores the growing financial strain on some nations.

Ayhan Kose, Deputy Chief Economist at the World Bank, emphasized the urgency of the situation, stating that achieving growth rates higher than borrowing costs is now a pressing challenge. This challenge is compounded by the World Bank’s Global Economic Prospects report, which forecasts the weakest global economic performance in over three decades, with emerging economies particularly vulnerable.

The report points to escalating geopolitical tensions, particularly in the Middle East, and a slowdown in global trade dynamics as additional obstacles to economic recovery. These factors disproportionately affect nations reliant on trade for growth and poverty reduction.

Kose also raised concerns about the possibility of debt restructuring in some nations if significant improvements in growth and financing conditions are not achieved. The World Bank underscores the importance of establishing robust frameworks for debt resolution, expressing disappointment in the slow progress of initiatives such as the G20’s Common Framework.

As nations grapple with these challenges, the imperative for decisive action to reignite economic growth and alleviate debt burdens cannot be overstated. Failure to address these issues risks undermining global stability and prosperity.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

22nd February, 2024

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023