The widening income gap between the poorest and wealthier nations has reached a critical point, according to a report from the World Bank released on Monday. For the first time this century, half of the 75 poorest countries in the world are experiencing a regression in their global economic standing.
Low investment and high inflation rates have contributed to sluggish economic growth in these vulnerable nations, with one out of every three poorest countries now in a worse economic situation than before the pandemic. This reversal has raised alarm bells for the global economy, as emphasized by Ayhan Kose, the deputy chief economist for the World Bank.
The report highlights the 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.