The World Bank recently reported that the 26 poorest economies are facing their highest debt burden since 2006, with government debt reaching an average of 72 percent of GDP. These countries, representing 40 percent of the global population, are receiving the lowest amount of international aid compared to the past two decades.
Amidst the COVID-19 pandemic, low-income economies have borrowed heavily, leading to triple primary deficits. Currently, almost half of these economies are in debt distress or at high risk. The World Bank’s International Development Association (IDA) has played a crucial role in providing aid to these nations, being their main source of support in 2022.
Despite the challenges, there is hope for these economies, according to the World Bank. By accelerating investment and receiving stronger support from the international community, these countries can overcome their financial difficulties and achieve their development goals.
It is essential for these economies to receive increased help from abroad to ensure their sustainable growth and prosperity.