World Bank Chief Economist Indermit Gill has raised alarms over the escalating debt crisis in emerging markets, exacerbated by recent U.S. tariffs. The International Monetary Fund (IMF) has downgraded global economic growth forecasts for 2025 to 2.8%, citing trade tensions as a significant factor. Gill highlighted that over half of 150 developing countries are at risk of or are already unable to meet debt service obligations, largely due to high interest rates and shrinking foreign investment. Debt servicing now consumes around 12% of GDP in emerging markets and up to 20% in poorer nations, cutting into vital spending on education and healthcare. He urged these countries to proactively liberalize trade by reducing their own tariffs and striking deals with the U.S. to avoid the crippling effects of retaliatory tariffs and to stimulate economic growth.​