Poorest 26 Nations Face Highest Debt Levels Since 2006, World Bank Warns

The World Bank has reported that the world’s 26 poorest countries are experiencing their worst debt levels since 2006, while facing growing vulnerabilities to natural disasters and other crises.

In its latest analysis, the World Bank revealed that these nations, with annual per capita incomes below $1,145, are worse off economically than they were before the COVID-19 pandemic, despite the global recovery. “On average, these countries are poorer today than they were on the eve of COVID-19,” the report stated.

International aid, crucial for these nations, has dropped to a 20-year low, making it difficult for them to access affordable financing. The World Bank highlighted that these countries, home to 40% of the global population most affected by poverty, are heavily reliant on the International Development Association (IDA), their largest source of low-cost funding.

Of the 26 countries studied, 22 are in Africa, with Afghanistan, Syria, Yemen, and North Korea also included. Government debt in these nations now averages 72% of economic output, the highest in nearly two decades.

Additionally, the report pointed out that low-income countries are more susceptible to natural disasters, which have caused average annual losses of 2% of their GDP between 2011 and 2023. This is five times higher than the average for lower-middle-income countries, further straining their economies as they face the increasing costs of climate adaptation.