A quarter of developing nations are financially worse off than before the Covid-19 pandemic, the World Bank revealed. The organization's report, released today, highlights a significant setback for low-income countries. Many affected nations are located in sub-Saharan Africa.
The World Bank identified Botswana, Namibia, the Central African Republic, Chad, and Mozambique among those experiencing economic decline since 2019. Economic growth in South Africa and Nigeria also stagnated, failing to increase average incomes despite Nigeria's rapidly expanding population. These negative shocks occurred over the six years leading up to the end of 2024.
The report signals potential market instability and reduced investor confidence in the affected regions. The World Bank did not immediately announce specific interventions but is expected to release detailed economic forecasts and policy recommendations soon.
Global growth has slowed considerably since the onset of the Covid-19 pandemic. Sub-Saharan Africa has been disproportionately impacted by factors including supply chain disruptions and reduced foreign investment. The World Bank will continue monitoring the situation and assessing the need for further action.
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