According to a new report from the World Bank, the world’s 26 poorest countries are more indebted than they have been since 2006. These countries, home to about 40 percent of the world’s poorest people, are now poorer on average than before the coronavirus pandemic. while the rest have largely restored the world.
The report highlights a significant setback in the fight against extreme poverty: the 26 poorest economies surveyed, with an annual per capita income of less than $1,145 (€1,046), are increasingly dependent on subsidies and near-interest-free loans as market financing has largely dried up, according to the World Bank.
Debt/GDP ratio higher than in 18 years
Their average debt ratio is 72 percent, the highest in 18 years, and half the group is in a debt crisis or at risk of one.
Natural disasters put pressure on GDP
Natural disasters have also hit these countries harder in the past decade. Between 2011 and 2023, natural disasters caused annual losses averaging two percent of GDP – which is five times higher than the average for lower-middle-income countries.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
