World Bank: Debt peaks, vulnerability soars to 2006 levels

The World Bank has raised alarm bells over the economic challenges faced by the world's 26 poorest economies, where a substantial 40% of the population lives on less than $2.15 a day. In a recent interview with CNBC Africa, Ayhan Kose, Deputy Chief Economist of the World Bank, emphasized the urgent need for international aid in these struggling nations, as debt levels have surged to peak levels last seen in 2006. Despite the global recovery post-pandemic, these economies have failed to bounce back, exacerbating vulnerabilities and deepening fiscal woes. Kose underscored the critical role of these countries in global poverty eradication and development, stressing the importance of targeted assistance and policy reforms to avert a looming crisis. The World Bank, through its International Development Association (IDA), is spearheading efforts to provide essential funds and guidance to support these economies in navigating their debt challenges and fostering sustainable growth.