The World Bank warned yesterday that many smaller emerging markets are faced with a “silent debt crisis” as they struggle to cope with the impact of high US interest rates on their finances.
Investors bet that borrowing costs will remain higher for longer and as a result, a proportion of emerging and developing countries’ borrowing costs are up to 10% higher than those in the US, where it’s 23%. This compares with less than 5% in 2019.
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