A Quarter of Developing Countries Now Poorer Than Pre-Pandemic Levels, World Bank Finds
The World Bank has warned that nearly a quarter of developing countries have fallen back behind their 2019 levels of income, a stark indication of the ongoing impact of the COVID-19 pandemic on global economies.
According to the bank's latest assessment, several low-income countries in sub-Saharan Africa are among those that have been hit hardest. These include Botswana, Namibia, and Mozambique, which together with Chad and the Central African Republic form part of a group of 14 countries whose average incomes are now lower than they were six years ago.
Notably, South Africa - one of Africa's largest economies - has also failed to post a significant increase in average incomes over this period, despite growth rates of 1.2% last year and 4.4% previously. Similarly, Nigeria, the most populous country in Africa, has seen its economy slow down.
The World Bank attributes these slowdowns to the "downshifting" of global economic growth, which has resulted in insufficient demand for goods and services, hindering job creation and poverty reduction efforts worldwide.
Globally, emerging economies are expected to experience a modest expansion in 2025 and 2026, but growth rates are projected to remain relatively low at around 4% over the next two years. The bank forecasts that China, however, will grow at 4.4% this year and 4.2% next year - the lowest pace of growth since 1990.
China's economic performance is seen as a significant factor in the global economy's resilience to uncertainty, but also points to ongoing challenges for the country's aging population and its complex post-pandemic recovery trajectory.
The World Bank's chief economist, Indermit Gill, has called for policymakers to take bold action, including strict budget discipline, private investment liberalization, trade expansion, reduced public consumption, and targeted investments in education and technology, in order to prevent stagnation, joblessness, and economic fragmentation.
The World Bank has warned that nearly a quarter of developing countries have fallen back behind their 2019 levels of income, a stark indication of the ongoing impact of the COVID-19 pandemic on global economies.
According to the bank's latest assessment, several low-income countries in sub-Saharan Africa are among those that have been hit hardest. These include Botswana, Namibia, and Mozambique, which together with Chad and the Central African Republic form part of a group of 14 countries whose average incomes are now lower than they were six years ago.
Notably, South Africa - one of Africa's largest economies - has also failed to post a significant increase in average incomes over this period, despite growth rates of 1.2% last year and 4.4% previously. Similarly, Nigeria, the most populous country in Africa, has seen its economy slow down.
The World Bank attributes these slowdowns to the "downshifting" of global economic growth, which has resulted in insufficient demand for goods and services, hindering job creation and poverty reduction efforts worldwide.
Globally, emerging economies are expected to experience a modest expansion in 2025 and 2026, but growth rates are projected to remain relatively low at around 4% over the next two years. The bank forecasts that China, however, will grow at 4.4% this year and 4.2% next year - the lowest pace of growth since 1990.
China's economic performance is seen as a significant factor in the global economy's resilience to uncertainty, but also points to ongoing challenges for the country's aging population and its complex post-pandemic recovery trajectory.
The World Bank's chief economist, Indermit Gill, has called for policymakers to take bold action, including strict budget discipline, private investment liberalization, trade expansion, reduced public consumption, and targeted investments in education and technology, in order to prevent stagnation, joblessness, and economic fragmentation.
. i remember when my grandma used to tell me about how hard life was back in the 80s and 90s, but at least there was a sense of hope for the future. now it seems like we're just going backwards 
. south africa's economy is supposed to be one of the strongest, but even that's struggling 
. it's not just about the money though, it's about people's lives and opportunities 
. we need policymakers to step up their game and make some real changes, not just talk about them 
. maybe if we work together, we can find a way out of this mess 
.
it's crazy to think that a quarter of developing countries have taken a step back financially since 2019... sub-Saharan Africa is getting hit the hardest 
botswana, namibia, mozambique, chad & central african republic are among the worst off 
policymakers need to take bold action to prevent stagnation and joblessness 
. A 4% growth rate? That's basically a slowdown in my book 
. And don't even get me started on South Africa and Nigeria - those economies are supposed to be some of the biggest ones on the continent, but they're struggling too? 
It just goes to show that even when you think things can't get any worse, they still can 
. The World Bank's suggestions are probably just a bunch of buzzwords anyway... more corporate speak for "let the rich keep getting richer" 
.
come on, 2025 is gonna be a wild ride for the world's economies! 
I mean, we're talking about nearly a quarter of developing countries being poorer than pre-pandemic levels? That's like me trying to pay my rent with a handful of crumpled up dollar bills 
.
. And Nigeria? Forget about it, they're like the uncle who never quite gets the hang of that new-fangled technology 
.
. Let's hope everyone else can follow suit! 
It's not just about the numbers, it's about human lives affected by these economic downturns.
. We need more than just incremental changes; we need bold action to address these systemic issues. Let's hope they take this warning seriously and start making some real progress soon 
guess its not as strong as ppl thought 
. China's growth might be decent this year, but it's actually a bit concerning that their post-pandemic recovery is so complex 
4% growth rates over two years isn't exactly what i'd call optimistic. china's economy is one thing but for the rest of us its more like "good luck with that" 
I agree w/ @IndermitGill 
Policymakers must act fast 2 implement reforms, invest in education & tech, & promote trade liberalization 
This will create jobs, stimulate growth, & help countries build resilience 
But it's not just about economic growth – human lives r at stake too 
We gotta support these nations w/ empathy & solidarity 