World Bank: Poorest countries debt burden in 18 years
The Washington-based development bank said government debt some of these countries, which nearly have 40 percent of the world’s population, now accounts for 72 percent of gross domestic product – the highest figure ever. in 18 years.
It can not be ignored that the amount of international aid which they receive as a share of economic output has fallen to the lowest level in two years ..
As much as these economies need foreign aid, “They should do somethings for themselves to better their economy from low income” Said Ayhan Kose the World Bank Vice President for Economic Affairs The bank reported that the Covid-19 pandemic caused low-income economies leading to heavy borrowing, resulting in a threefold decline in the first recession. It also noted that many countries had not made sufficient adjustments for their
shortfall.
Almost half of the 26 world poorest economies are at risk of debt crisis – doubling the figure from 2015. The Association (IDA) provided ” nearly half” of all development assistance provided to them economically from multilateral organizations by 2022. “At a time when most countries in the world were left to battle things on their own. IDA played the most important lifeline,” said Indermit Gill, the bank’s chief economist.
“However, if they are to emerge from the sudden shocks and achieve the main development goals, low-income economies must increase the rate of investment to an unprecedented rate,” he further stated.
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