A Quarter Of Developing Countries Are Poorer Than They Were in 2019 According to the World Bank.
The Global Economy's Wake-Up Call: A Quarter of Developing Countries Struggle with PovertyImagine a world where one in four countries is poorer than it was six years ago. Sounds like a scene from a dystopian novel, right? Unfortunately, this is the harsh reality we're facing today. According to a recent report by the World Bank, a quarter of developing countries are struggling with poverty, and the numbers are alarming.
The report highlights that many low-income countries in sub-Saharan Africa have suffered a negative shock since 2019, which has delayed their recovery from the pandemic. The global growth rate has "downshifted" since Covid-19, making it challenging for these countries to bounce back. In fact, economic growth in emerging market and developing economies is expected to slow down from 4.2% last year to 4% next year.
But what's even more concerning is that the pace of global growth is insufficient to reduce extreme poverty and create jobs where they're needed most. The World Bank estimates that there will be a shortage of jobs for the 1.2 billion young people expected to enter the workforce in the next decade. This is a ticking time bomb, folks!
Indermit Gill, the World Bank's chief economist, puts it bluntly: "These trends cannot be explained by misfortune alone. In far too many developing countries, they reflect avoidable policy mistakes." He emphasizes that governments need to stick to strict budget rules to provide a foundation for sustainable growth.
So, what can be done? Gill suggests that governments must aggressively liberalize private investment and trade, rein in public consumption, and invest in new technologies and education. It's time for policymakers to get creative and think outside the box!
The World Bank also expects China to grow at 4.4% this year and 4.2% next year – a significant upgrade from previous estimates. However, even these numbers are below the country's prized 5% target. This is a wake-up call for policymakers worldwide to take action.
As we navigate this complex economic landscape, it's essential to remember that the global economy has become less capable of generating growth and more resilient to policy uncertainty. But don't be fooled – economic dynamism and resilience cannot diverge for long without fracturing public finance and credit markets.
The World Bank's report is a stark reminder that we need to rethink our approach to economic development. It's time to prioritize sustainable growth, invest in education and innovation, and create jobs for the next generation. The clock is ticking – will we rise to the challenge?
In conclusion, the World Bank's report paints a sobering picture of the global economy. But it also presents an opportunity for us to come together and find solutions to these pressing issues. Let's work towards creating a brighter future for all – one that's built on sustainable growth, innovation, and inclusivity.
Sources:
* The World Bank Report (2026)
* Indermit Gill, Chief Economist, World Bank
Note: This article is based solely on the provided document and does not include any external information or prior knowledge.
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