In brief
Bangladesh’s external debt is projected to reach $113.44 billion by the end of 2025, according to the World Bank’s International Debt Report 2026. The figure represents a near tripling from the $38.77 billion recorded in 2015, and places Bangladesh’s per‑capita debt at $646. The report also highlights a record $9.4 trillion rise in developing‑country external debt worldwide, raising questions about sustainability and future fiscal pressures.
The World Bank’s International Debt Report 2026 says Bangladesh’s external debt will reach nearly $113.44 billion by the end of 2025, according to a Xinhua‑reported release at the Washington‑based lender’s headquarters.
Bangladesh’s external liabilities have nearly tripled over the past decade, climbing from $38.77 billion in 2015 to $113.44 billion in 2025, according to the World Bank’s figures. The loan implies a per‑capita external debt of roughly $646, assuming an estimated 175.7 million residents in 2025, as reported by Xinhua.
Background
World Bank data show that developing countries’ external debt surged by 5.5 percent, reaching a record $9.4 trillion in 2025— the fastest pace since 2021 and approximately four times the 2022‑24 average. This global rise puts Bangladesh’s debt increase in stark contrast to the broader economic slowdown seen in many emerging markets.
The World Bank’s estimate is derived from its International Debt Report 2026, which compiles macro‑financial data from national governments, multilateral lenders, and private creditors. Xinhua notes that this report provides a comprehensive view of both sovereign and non‑sovereign external obligations for the world's largest economies.
Bangladesh’s debt evolution parallels the country’s ambitious infrastructure and social‑development programs financed through external borrowing. The rise to $113.44 billion reflects the cumulative effect of multilateral loans, bilateral aid, and private credit extended over the last ten years.
The World Bank has not yet released a detailed assessment of Bangladesh’s debt sustainability thresholds. Analysts expect that the sharp rise may intensify scrutiny of debt‑service capacity, and test the government’s fiscal resilience amid inflation and interest‑rate pressures.
Several questions arise from the report. First, how will the increasing debt burden influence government spending priorities, especially on health, education, and infrastructure? Second, to what extent will rising debt servicing costs consume a larger share of the national budget and potentially jeopardize macroeconomic stability? Third, what policy tools— such as debt restructuring or diversification of the external portfolio— will Bangladesh explore to mitigate risk?
Bangladesh’s core economic indicators— GDP growth, fiscal balance, and external trade— remain relevant lenses for evaluating debt sustainability. The government’s balanced‑budget strategy is designed to manage debt levels while keeping fiscal deficits under control, but the new World Bank figures could alter that calculus.
Meanwhile, the World Bank’s global debt data underscore a broader trend of sovereign indebtedness that may necessitate coordinated policy responses from international financial institutions. If Bangladesh’s debt service requirements rise, it could strain diplomatic openness to new external financing, potentially leading to tighter borrowing terms or tighter country‑specific financing programs.
Looking ahead, analysts anticipate that the World Bank’s 2026 report will be followed by a country‑specific debt advisory table for Bangladesh, which may recommend measures— such as debt‑service forecasting or refinancing options— to support sustainable growth. The outcomes of those recommendations will influence how Bangladesh balances continued investment with fiscal prudence.