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large, advanced economies like France and the UK were offset by declines in Japan and smaller
economies, such as Greece and Portugal.

? Excluding China, public debt in emerging markets and developing economies edged down to
under 56 percent on average.

? Private debt trends varied significantly across countries. The United States experienced a
significant drop of 4.5 percentage points, to 143 percent of GDP), while China recorded an
increase of 6 points, to 206 percent of GDP. Among other emerging markets and developing
economies, private borrowing surged in larger economies like Brazil, India, and Mexico, but
declined in Chile, Colombia, and Thailand.

The persistently high global fiscal deficit, averaging around 5 percent of GDP, is the main driver of rising
public debt. This deficit still reflects legacy costs from the Covid-19—such as subsidies and social
benefits-combined with rising net interest costs.

The decline in private debt stems from different factors depending on the country and income group. In
many advanced economies, companies are borrowing less, likely in response to subdued growth
prospects, continuing a trend started in 2023. In the US, strong balance sheet positions and cash
holdings are also contributing to lower corporate borrowing. In other cases, rising public debt alongside
falling private debt suggests a crowding-out effect, in which heavy public borrowing limits credit
availability or raises its cost for the private sector.

3. Is AI adoption impacting job markets in South Asia? - World Bank

The rapid development of artificial intelligence (AI) is transforming the global economy and reshaping
labor markets. South Asia’s workforce has limited exposure to changes caused by the adoption of AI
owing to the predominance of low-skill, agricultural, and manual jobs.

But moderately educated, young workers, especially in sectors such as business services and
information technology, are vulnerable. But AI could also bring substantial productivity gains, especially
in sectors that have strong potential for AI to complement humans.

? Rising importance of AI
The economic shifts caused by AI will likely have profound consequences for labor markets in South
Asia, bringing both opportunities and risks for sustained, rapid job creation.

According to job postings collected by Lightcast (a labor market research and consulting firm with a
database covering 28 million listings between 2020 and 2025) between January 2023 and March 2025,
the share of AI-related postings in South Asia more than doubled—from 2.9 to 6.5 percent of all
listings—and demand for AI skills grew 75 percent faster than overall non-AI listings.

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