World Bank reports poorest nations face highest debt levels since 2006

The World Bank reports that the 26 poorest countries are in their worst financial condition since 2006, with rising debt and increased vulnerability to natural disasters. These nations are poorer now than before the COVID-19 pandemic. The average debt-to-GDP ratio for these countries is 72%, the highest in 18 years. Many are heavily reliant on grants and loans from the International Development Association, as market financing has diminished. Two-thirds of these countries face armed conflicts or instability, limiting foreign investment. The World Bank aims to raise over $100 billion to support these economies, which have suffered significant losses from natural disasters in recent years.