A new analysis by the United Nations Development Programme (UNDP) has warned that increasing sovereign debt servicing is placing a disproportionate burden on women, putting an estimated 55 million jobs at risk and reducing women’s per capita income by 17 per cent.
The findings, based on data from 85 developing countries, are contained in a report titled “Who Pays the Price? Gender Inequality and Sovereign Debt.” The report shows that women are more vulnerable to job losses, declining incomes, and rising unpaid care responsibilities, while men’s earnings remain largely stable—widening the gender income gap.
According to the report, as governments allocate more resources to debt repayment, spending on health, welfare, and care systems is often cut. This reduces access to essential services and formal employment opportunities, with women bearing the brunt of the impact.
“Sovereign debt is not a math problem; it is a human one,” said Alexander De Croo, noting that heavy debt obligations limit fiscal space and force cuts to vital social services.
He added that reductions in care services shift responsibilities back to households, where women carry most of the burden, often constraining their participation in economic activities. He stressed that debt management strategies must protect investments in social and care systems that support resilient economies and human development.
The report further estimates that job losses could rise to 92.5 million women in the long term if countries move from moderate to high debt repayment burdens.
It also highlights broader social impacts, including a projected 32.5 per cent increase in maternal mortality—equivalent to 67 additional deaths per 100,000 births—and a decline in life expectancy for both women and men, reflecting mounting pressure on public health systems.
UNDP warned that these trends could reverse development gains, particularly amid rising global tensions, energy market volatility, and inflation, all of which further constrain government spending.
Raquel Lagunas emphasised the need for gender-responsive debt policies, stating that when public spending is squeezed, women are often the first to lose jobs, services, and economic security.
She called for the integration of gender impact assessments into borrowing decisions, protection of investments in social and care infrastructure, and the adoption of gender-responsive budgeting to better track the effects of debt servicing.
The report urged governments and international financial institutions to prioritise employment, human development, and gender equality in debt sustainability strategies, while avoiding austerity measures that could worsen inequality.

