The IMF forecast 3.1% global growth in 2024, a fifth of a point increase on its October projection. According to the IMF, the new forecast is still below the 3.8% growth average during the two pre-pandemic decades. The report noted risks to trade routes as a result of war and that the Israel and Gaza conflict spreads and sends food and fuel costs to new highs.

“Most countries are facing economic challenges while their debt payments are too high,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. "When countries need resources and interest rates on loans are high, we have a recipe for more crises."

Developing countries spend 13% of their budgets repaying debt, more than double the figure 15 years ago, and debt problems prevent necessary investments, according to the IMF. High rates moved by major central banks, in attempts to contain inflation, fuel a higher cost of borrowing for these countries.

“While developing countries are still dealing with challenges from the pandemic, slow growth and high debts are bad news,” added LeCompte. “Developing countries need debt relief and more resources to confront continuing economic shocks."

Earlier this month, the World Bank found that 40% of the low-income countries are poorer than before the pandemic. Developing country debt payments were at the highest level ever in 2022 and expected to continue to grow.

Read the IMF's World Economic Outlook Update here.