WASHINGTON: The 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, according to a new World Bank study.
In its analysis published on Sunday, the World Bank found that these26 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.
The 26 nations examined are home to some 40% of the global population most affected by poverty, the bank said.
Twenty-two of the 26 low-income countries listed are in Africa, plus Afghanistan, Syria, Yemen and North Korea.
Government debt is now 72% 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 2% 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, the World Bank said. — dpa
Oman Observer is now on the WhatsApp channel. Click here
