According to the World Bank, 14 of 28 low-income countries are in debt distress or at a high risk of debt distress.
The most vulnerable economies, the report warned, are facing greater risk of financial crises as a result of rising rates.
Higher interest rates make it more expensive for developing countries to service their loan payments and, if their currencies depreciate, to import food.
In addition to the risks posed by rising interest rates, the pandemic and the conflict in Ukraine have combined to reverse decades of progress in global poverty reduction.
The World Bank estimated on Tuesday that in 2024, incomes in the poorest countries would be 6 percent lower than in 2019.
Persons:
Kose, —
Organizations:
World Bank
Locations:
United States, Europe, Ukraine