RN Desk: – The world’s 26 poorest economies are facing the most significant debt burden since 2006, the World Bank announced in a new report published Sunday.<\/p>\n
Government debt in these countries, which are home to around 40 percent of the world’s population, now stands at an average of 72 percent of GDP — an 18-year high — the Washington-based development lender said.<\/p>\n
At the same time, the amount of international aid they receive as a share of their economic output has shrunk to a two-decade low.<\/p>\n
“There is much that low-income economies can — and must — do for themselves,” the World Bank’s deputy chief economist, Ayhan Kose, said in a statement. “But these economies also need stronger help from abroad.”<\/p>\n
Low-income economies borrowed heavily during the Covid-19 pandemic, causing primary deficits to triple, the Bank said, adding that many countries had been unable to “fully unwind” these deficits.<\/p>\n
Nearly half of the world’s 26 poorest economies now find themselves in debt distress or at high risk of it — double the figure it was in 2015.<\/p>\n
The World Bank said its concessional lending arm, the International Development Association (IDA), had provided “nearly half” of all the development aid these economies received in 2022 from multilateral organizations.<\/p>\n
“At a time when much of the world simply backed away from the poorest countries, IDA has been their main lifeline,” the Bank’s chief economist Indermit Gill said.<\/p>\n
“But if they are to rise out of a state of chronic emergency and meet key development goals, low-income economies will need to accelerate investment to a pace without precedent,” he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
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