Discover the top 10 countries facing substantial debt burdens to China, as reported by the World Bank. From Pakistan's $26.60 billion to Nigeria's $4.29 billion, explore the implications of these debts on economic growth and stability.
In the global landscape of debt accumulation, low and middle-income countries (LMICs) have witnessed a notable surge over the past decade, far outpacing their economic growth. Particularly concerning is the acceleration of debt levels in poorer nations, which has become a pressing issue. According to the World Bank’s International Debt Report 2023, while the overall external debt for LMICs experienced a slight decrease from $9.3 trillion in 2021 to $9.0 trillion in 2022, there was a marked increase of 2.7% for countries eligible for International Development Association (IDA) resources, reaching a record $1.1 trillion.
The World Bank’s Databank, specifically the International Debt Statistics section, provides data on the total external debt each country owes to China. Here are the top 10 countries in debt to China as of 2022:
- Pakistan: $26.60 Billion
- Pakistan’s debt to China is mainly due to the China-Pakistan Economic Corridor (CPEC), part of China’s Belt and Road Initiative (BRI).
- Angola: $20.98 Billion
- Angola’s debt comes from loans used for post-civil war infrastructure rebuilding, heavily tied to its oil sector.
- Sri Lanka: $8.84 Billion
- Sri Lanka’s debt includes projects like the Hambantota Port, leased to a Chinese company after repayment struggles.
- Ethiopia: $6.82 Billion
- Ethiopia has used Chinese loans for infrastructure projects such as the Addis Ababa-Djibouti Railway.
- Kenya: $6.69 Billion
- Kenya’s debt is linked to infrastructure projects like the Standard Gauge Railway (SGR).
- Zambia: $6.08 Billion
- Zambia’s debt highlights its dependence on Chinese financing for mining and infrastructure projects.
- Bangladesh: $6.05 Billion
- Bangladesh’s debt has funded various infrastructure projects critical for its economic development.
- Laos: $5.25 Billion
- Laos has borrowed heavily for projects like the Laos-China Railway, part of the BRI.
- Egypt: $5.21 Billion
- Egypt’s debt includes funding for large infrastructure and energy projects.
- Nigeria: $4.29 Billion
- Nigeria’s debt to China supports essential infrastructure projects but poses challenges due to the country’s oil-dependent economy.
Source: Businessday
