Are the world's poorest countries on the brink of economic collapse?
The World Bank reports that a total of 26 of the world's poorest countries, including Burundi, Malawi, Congo, Burkina Faso, and Uganda, are now facing an urgent financial crisis since 2006.
According to a report released on October 13, 2024, the debt level of these countries continues to rise to the highest level in 18 years, with a 72% ratio of debt to Gross Domestic Product (GDP).
The situation has become critical after the COVID-19 pandemic, resulting in the economic decline of these countries, although many other countries have recovered and the economy is growing again.
Around 40% of the world's poorest people live in these countries, with a high risk of natural disasters and economic crises.
Most of these countries depend on unstable commodity exports and are facing armed conflicts and institutional weaknesses that hinder foreign investment.
The World Bank is currently working hard to raise more than US$100 billion in funds by December to support International Development Assistance (IDA).
The World Bank also urges the countries involved to improve the tax system and increase the efficiency of public spending to overcome the problem of poverty and worsening debt.
