Global debt has reached a level not seen since 1970. The current environment of low interest rates and subpar growth performance has triggered a debate about benefits and costs associated with debt. This debate has mainly focused on advanced economies. However, emerging market and developing economies (EMDEs) also face record-low borrowing costs and many have rapidly accumulated debt since the global financial crisis. Since 2001, their total debt has risen by about 70 percentage points of GDP to a historic peak of almost 170 percent of GDP in 2018.