The World Bank has issued a stark warning about the dire situation facing the world’s 26 poorest countries, stressing their unprecedented debt levels and increasing vulnerability to crises, Al Jazeera reports.
The report, released on Sunday, reveals that these economies are worse off now than before the COVID-19 pandemic, despite the rest of the world largely recovering. Per capita income has plummeted by an average of 14 percent between 2020 and 2024, a direct consequence of the pandemic and subsequent overlapping crises.
The report underscores the urgent need for increased investment. To achieve critical development goals, these economies require an additional 8 percent of their GDP in annual investment through 2030 – double the average investment seen over the past decade.
However, the report also reveals a concerning trend in international aid. Net official development assistance as a share of GDP has fallen to a 21-year low of 7 percent in 2022, highlighting a decline in global support despite the growing needs of these countries.
The report further outlines the disproportionate impact of natural disasters on low-income economies. Between 2011 and 2023, these countries experienced average annual losses of 2 percent of GDP due to natural disasters, five times the average losses in lower-middle-income countries.
Adapting to climate change also poses a significant challenge, with low-income economies facing costs equivalent to 3.5 percent of their GDP per year, five times more expensive than for other developing economies.
