Alarming situation of poor countries in record debt in nearly 2 decades

Báo Thanh niênBáo Thanh niên14/10/2024


Báo động tình trạng các nước nghèo mắc nợ kỷ lục trong gần 2 thập niên- Ảnh 1.

People receive food in the Omdurman region of Sudan, where nearly 5 million people face famine.

A World Bank report released on October 13 said the world's 26 poorest countries are in record debt since 2006 and are increasingly vulnerable to natural disasters and other shocks.

Government debt in these countries, home to about 40% of the world's population, is now at an average of 72% of GDP, the highest level in 18 years, according to AFP citing a report by the Washington DC-based development lender.

In addition, the amount of international aid they receive as a proportion of economic output has fallen to its lowest level in two decades.

“There is much that low-income economies can and must do on their own. But they also need stronger support from abroad,” said World Bank deputy chief economist Ayhan Kose.

The bank said low-income economies had borrowed heavily during the Covid-19 pandemic, causing their primary deficits to triple. Many countries had failed to “completely eliminate” these deficits.

Nearly half of the world’s 26 poorest economies are now in debt or at high risk of debt, double the number in 2015. These are countries with annual per capita incomes below $1,145 (VND28.4 million).

The World Bank said its concessional lending arm, the International Development Association (IDA), would provide nearly half of all development assistance these economies received in 2022 from multilateral institutions.

“At a time when much of the world is simply pulling back from the poorest countries, IDA has become their lifeline,” said World Bank chief economist Indermit Gill.

“But if they are to escape chronic emergencies and achieve key development goals, low-income economies will need to accelerate investment at an unprecedented pace,” he added.



Source: https://thanhnien.vn/bao-dong-tinh-trang-cac-nuoc-ngheo-mac-no-ky-luc-trong-gan-2-thap-nien-185241014074253883.htm

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