The World Bank says 26 poorest countries worldwide “are deeper in debt than at any other time since 2006,” while being increasingly vulnerable to natural disasters and other catastrophes.
The countries include South Sudan, Burundi, Central African Republic, Democratic Republic of the Congo, Mozambique, Niger, Malawi, Liberia, and Madagascar, among others.
Nigeria occupies 46th position on the World Poorest Countries’ 2024 list, with a Gross Domestic Product [GDP] based on Purchasing Power Parity [PPP] per capita $6,340.
In its analysis, the World Bank found that these 26 nations, which have an annual per capita income of less than $1,145 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.
It added that 22 of the 26 low-income countries listed are in Africa, plus Afghanistan, Syria, Yemen and North Korea.
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. (dpa/NAN)
