## Debt Vulnerabilities And Financing Challenges In Emerging Markets And Developing Economies—An Overview Of Key Data

_Policy Papers, February 20, 2025_

## Source details

**Canonical URL:** [Debt Vulnerabilities And Financing Challenges In Emerging Markets And Developing Economies—An Overview Of Key Data](https://www.imf.org/en/publications/policy-papers/issues/2025/02/19/debt-vulnerabilities-and-financing-challenges-in-emerging-markets-and-developing-economies-562218)

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## Bibliographic details
- Published: February 20, 2025
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798229002264.007

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### Summary findings
- Many emerging markets and developing economies (EMDEs) face elevated debt vulnerabilities and financing needs.
- Following the 2020-21 surge in debt levels associated with the COVID-19 shock, and the subsequent tightening in global financial conditions, many EMDEs are grappling with rising debt service burdens that squeeze the space available for development spending.
- Pandemic-induced deficits have declined, and debt levels have stabilized and are projected to remain stable or slightly decline under staff’s baseline assumptions.
- Many EMDEs are confronting high costs of financing, large external refinancing needs, and a decline in net external flows amid important investment and social spending needs.
- The paper provides factual data and insight to inform the international debate on debt vulnerabilities and financing pressures facing EMDEs.

### Key data and indicators highlighted
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.
- Publication specifics as stated:
  - Pages: 24
  - Volume: 2025
  - Issue: 002
  - DOI: https://doi.org/10.5089/9798229002264.007
  - Stock No: PPEA2025002
  - ISBN: 9798229002264
  - ISSN: 2663-3493
- Publication date: February 20, 2025

### Policy implications and recommendations
- Countries would benefit from actions, both at domestic and international level, to proactively expand their capacity to finance development spending.
- The analysis implies the need for measures to address:
  - High costs of financing.
  - Large external refinancing needs.
  - Declines in net external flows.
  - Preservation of space for investment and social spending under rising debt service burdens.

### Risks and monitoring
- There are important risks to the baseline that will require careful monitoring.
- The paper emphasizes ongoing monitoring of financing costs, external refinancing requirements, and net external flow trends as they affect debt vulnerabilities and development spending space.

_International Monetary Fund. Strategy, Policy, & Review Department "Debt Vulnerabilities And Financing Challenges In Emerging Markets And Developing Economies—An Overview Of Key Data", Policy Papers 2025, 002 (2025), accessed 8/18/2026, https://doi.org/10.5089/9798229002264.007._

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2025/02/19/debt-vulnerabilities-and-financing-challenges-in-emerging-markets-and-developing-economies-562218_