Amid rising government debt levels, higher interest rates, global economic slowdown and heightened geopolitical uncertainty, the risk of public debt distress and debt overhang in developing countries will remain elevated in coming years. At the same time, large financing needs to meet the Sustainable Development Goals (SDGs) and climate ambitions are adding more pressure on fiscal and debt positions. Debt distress in some countries has been further aggravated by existing current account deficits, tight debt redemption schedules, and lack of access to conventional lending markets. How developing countries navigate the difficult balancing act of ensuring post-pandemic socioeconomic recovery and pursuing the SDGs while maintaining public debt sustainability is therefore a key policy consideration. In this pursuit, public debt can be a powerful tool to support sustainable development, if used judiciously and with a long-term horizon. Nevertheless, developing countries will need to continue to explore ways to strengthen fiscal positions and reduce short-term debt distress. This policy brief, jointly prepared by the five Regional Commissions of the United Nations, outlines broad trends in public debt across the globe, discusses policy issues and options, and highlights policy experiences and lessons that governments across regions can learn from each other. […]