World Bank report

Poorest countries in historic debt crisis

The report highlights a significant setback in the fight against extreme poverty.

(Bild: AFP)

According to a new World Bank report, the world's 26 poorest countries are more indebted than they have been since 2006. These countries, which are home to around 40 percent of the world's poorest people, are on average poorer today than before the coronavirus pandemic, while the rest of the world has largely recovered.

The report highlights a significant setback in the fight against extreme poverty: the 26 poorest economies surveyed with an annual per capita income of less than 1145 dollars (1046 euros) are increasingly dependent on grants and almost interest-free loans as market financing has largely dried up, according to the World Bank.

Debt to GDP ratio higher than it has been for 18 years
At 72 percent, their average debt-to-GDP ratio is the highest it has been in 18 years, and half of the group is either in debt crisis or at risk of it.

Natural disasters put pressure on GDP
Natural disasters have also hit these countries harder in the last ten years. Between 2011 and 2023, natural disasters caused annual losses averaging two percent of GDP - which is five times higher than the average for lower middle-income countries.