A new report from the World Bank has revealed that half of the 75 poorest countries in the world are experiencing a widening income gap with wealthier nations. This marks the first time this century that such a gap has grown, showing a serious structural regression in the global economy.
Low investment and high inflation rates are contributing to sluggish economic growth expected to continue in the coming years. One out of every three of the poorest countries are now in a worse economic situation than before the pandemic.
The deputy chief economist for the World Bank, Ayhan Kose, emphasized the severity of this reversal, stating that alarm bells are ringing for the global economy. The disparity between the richest and poorest nations has increased over the past five years, highlighting an urgent need for action to address this growing income gap and prevent further economic decline in these vulnerable nations.
Rising inequality poses a significant threat to global economic stability, requiring immediate attention and support from the international community. The report calls for concerted efforts from governments, international organizations, and private sector actors to promote inclusive growth and reduce poverty in these countries.
