The World Bank reports, that the world's 26 poorest countries are facing their highest levels of debt since 2006 and their economies are weaker than before the COVID-19 pandemic. This is stated in a new report of the institution, published before the annual meetings of the World Bank and the International Monetary Fund, cited by Reuters and News.bg.
Among these 26 countries are some of the world's poorest, including Burundi, South Sudan and Malawi. For example, Burundi has a gross domestic product (GDP) per capita of about US$221, which places it among the poorest nations. In South Sudan, the GDP is about 275 dollars, and in Malawi – $439 per person. These countries are heavily affected by internal conflicts, lack of investment and weak infrastructure.
The report highlights that these nations are particularly vulnerable to natural disasters and external shocks, with over two-thirds of them in a state of armed conflict or struggling to manage public order.
Most of these countries are located in sub-Saharan Africa, including Ethiopia, Chad and Congo, but the list also includes Afghanistan and Yemen. Armed conflicts and problems with maintaining public order deter foreign investment.
Accumulated natural disasters over the past decade have resulted in average annual losses of 2% of GDP for these countries, five times the average for lower-middle-income countries.