People receive food in the Omdurman region of Sudan, where nearly 5 million people face starvation.
A World Bank report released on October 13th stated that the 26 poorest countries in the world are at record levels of debt since 2006 and are increasingly vulnerable to natural disasters and other shocks.
Government debt in these countries, home to about 40% of the world's population, currently averages 72% of GDP, the highest level in 18 years, according to AFP, citing a report from a Washington DC-based development lending institution.
In addition, the amount of international aid they receive as a percentage of economic output has fallen to its lowest level in two decades.
"There are many things that low-income economies can and must do on their own. But these economies also need stronger support from abroad," according to Ayhan Kose, deputy chief economist of the World Bank.
The bank said that low-income economies borrowed heavily during the Covid-19 pandemic, tripling their primary deficits. Many countries have been unable to "completely eliminate" these deficits.
Nearly half of the world's 26 poorest economies are now in debt or at high risk of debt, double the figure from 2015. These are countries with an annual per capita income below $1,145 (28.4 million VND).
The World Bank said its concessional lending arm, the International Development Association (IDA), provided nearly half of the total development aid these economies received in 2022 from multilateral institutions.
"At a time when much of the world is simply withdrawing from the poorest countries, IDA has become their main lifeline," according to World Bank chief economist Indermit Gill.
"But if they want to escape chronic emergency situations and achieve key development goals, low-income economies will need to accelerate investment at an unprecedented pace," he added.
Source: https://thanhnien.vn/bao-dong-tinh-trang-cac-nuoc-ngheo-mac-no-ky-luc-trong-gan-2-thap-nien-185241014074253883.htm
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