Women hardest hit by rising debt in developing countries — UNDP

A new analysis by the United Nations Development Programme (UNDP) finds that rising debt-servicing burdens in developing countries disproportionately harm women. The report shows that when governments allocate more resources to debt repayment, women experience sharper income declines and higher job risk compared with men.

Based on data from 85 developing countries spanning three decades, UNDP estimates that moving from a moderate to a high debt-servicing burden—measured as a share of exports—leads to an average 17% decline in women’s per capita income while men’s incomes remain largely unchanged. The analysis also projects roughly 55 million potential job losses among women associated with higher debt pressures and the resulting public spending cuts.

The mechanism is primarily fiscal: austerity and spending reprioritization in response to debt stress often reduce funding for care services, social protection and employment programs that support women’s labor participation. As a result, unpaid care responsibilities rise and formal employment prospects for women deteriorate. UNDP calls for debt strategies that prioritize employment, human development and gender equality rather than deep spending cuts.

The findings come amid broader warnings from UN agencies and economic monitors that developing countries face elevated debt-servicing costs driven by higher global interest rates, currency pressures and shocks such as the ongoing conflict in the Middle East, which has intensified energy and trade disruption. Those pressures threaten to reverse development gains and constrain public investment in health, education and social services.

Market and policy commentators say coordinated debt relief, smarter restructuring frameworks and protected social spending are essential to avoid widening gender inequalities. Analysts warn that short-term fiscal consolidation without gender-aware measures could magnify the socio-economic fallout for women, and they urge international lenders and national governments to incorporate gender impact assessments into debt sustainability discussions.