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The Guardian - UK
The Guardian - UK
Business
Larry Elliott

Poor countries forced to cut public spending to pay debts, campaigners say

Lumley market in Freetown, Sierra Leone
Sierra Leone is one the countries identified as having to divert resources to debt repayments despite the need to counter spiralling food and energy prices. Photograph: Saidu Bah/AFP/Getty Images

The lack of an effective debt relief scheme is forcing some of the world’s poorest countries to cut public spending to keep up payments to their creditors, research reveals.

A report by Debt Justice says the most heavily indebted nations were expected to reduce public expenditure by 3% on average between 2019 and 2023 despite the need to counter the impact of spiralling food and energy prices.

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