Unfavourable global macrofinancial conditions have given rise to concerns about public debt sustainability in developing economies, including those of Latin America and the Caribbean. These adverse conditions threaten to worsen the already weak economic growth in the region. Public debt in the region is at levels last seen two decades ago, with a sharp increase in 2020 capping a progressive rise over the past decade. History suggests that countries may undergo development distress when similar macrofinancial and debt conditions coincide.