World Bank says 26 poorest countries in worst financial shape since 2006

A new World Bank report reveals that the world’s 26 poorest countries, home to 40% of the most impoverished people, are in their worst financial state since 2006.

With debt-to-GDP ratios at an 18-year high (72%), half of these nations face debt distress, and two-thirds are affected by conflicts or fragility.

These economies, heavily reliant on International Development Association (IDA) grants and loans, are vulnerable to natural disasters, suffering annual losses of 2% of GDP.

The report emphasizes the need for better tax collection and public spending efficiency to aid recovery.