World Bank reports 26 poorest countries face highest levels of debts since 2006
Date
10/14/2024 4:27:30 AM
(MENAFN) A new report from the World bank reveals that the 26 poorest countries, which are home to approximately 40 percent of the world's poorest people, are now facing their highest levels of debt since 2006. These nations are increasingly susceptible to natural disasters and other economic shocks, exacerbating their already vulnerable conditions.
According to the report, published on Sunday, the average economic status of these countries has deteriorated since the onset of the COVID-19 pandemic, in stark contrast to the broader global recovery that has seen many other nations bounce back and resume growth. This highlights a significant setback in the global fight against extreme poverty, as the report emphasizes the challenges these countries face in improving their economic situations.
As the World Bank prepares for its annual meetings with the International Monetary Fund in Washington next week, the report underscores the organization's efforts to raise USD100 billion to support its fund for the poorest nations, known as the International Development Association (IDA). The 26 countries examined in the study have per capita incomes of less than USD1,145 annually and are increasingly dependent on IDA grants and loans, which are offered at near-zero interest rates due to severely constrained financing options.
Most of the countries in the report are situated in sub-Saharan Africa, ranging from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen. The report notes that two-thirds of these nations are experiencing armed conflicts or struggle to maintain order due to institutional and social instability, which hampers foreign investment and obstructs exports. Additionally, natural disasters have inflicted significant damage on these countries over the past decade, further complicating their economic recovery efforts.
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