WorldStage Newsonline– The World Bank said that 26 poorest countries worldwide out of which 22 are from Africa “are deeper in debt than at any other time since 2006,” while being increasingly vulnerable to natural disasters and other catastrophes.
The African countries listed among the low-income countries by the World Bank include Burkina Faso, Central African Republic, Chad, Democratic Republic of Congo, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Somalia, South Sudan, Sudan, Tanzania, and Uganda.
In its analysis, the World Bank found that the 26 nations including Afghanistan, Syria, Yemen and North Korea, which have an annual per capita income of less than 1,145 dollars a year, “are poorer today on average than they were on the eve of Covid-19, even though the rest of the world has largely recovered.”
“Yet international aid as a share of their GDP [gross domestic product] has dwindled to a two-decade low, starving many of much-needed affordable financing,” the World Bank said in a press release.
According to the world bank, the 26 nations examined are home to some 40 per cent of the global population most affected by poverty.
Government debt is now 72 per cent of economic output on average, the highest level recorded in 18 years.
According to the World Bank, the ability of low-income economies to obtain low-cost financing has largely been exhausted, making the World Bank’s International Development Association (IDA) “their single-largest source of low-cost financing from abroad.”
The IDA plays a key role in the fight against global poverty. It provides grants and nearly interest-free loans to the most vulnerable economies and is crucial for the 26 poorest of them, according to the World Bank.
The World Bank also noted that low-income economies are much more prone to natural disasters than other developing countries.
According to the report, natural disasters caused annual losses averaging two per cent of economic output between 2011 and 2023, five times higher than the average for low-middle-income countries.
The costs of adapting to climate change are also far higher for low-income economies.
