Jakarta, CNN Indonesia —
PBB released a report titled Crisis Response Group last month. The report says more than half of the world’s poorest countries are debt and high risk of being in trouble and going bankrupt like Sri Lanka.
Citing AP Monday (11/7), the crisis in the country occurred because of corruption, civil war, coups, and other disasters.
The following is a list of 10 countries whose economic conditions are ‘sick’.
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1. Afghanistan
Afghanistan has been reeling from a dire economic crisis since the Taliban took their government from the US and its allies last year.
Foreign aid on which to rely on practically stalled overnight and Afghanistan was hit with sanctions, such as the stalled bank transfer service that crippled the trade sector.
Half of the country’s 39 million people face life-threatening food insecurity. Meanwhile, civil servants, doctors, nurses, teachers do not get a salary for months.
The recent earthquake also claimed more than 1,000 lives, adding to Afghanistan’s misery.
2. Argentina
About 4 in 10 Argentines are the poorest. In fact, millions of people survive from soup kitchens through welfare programs and social assistance
Argentina’s economic downturn occurred after the country’s central bank ran out of foreign exchange reserves due to the weakening of the Argentine peso. It is projected that this year’s inflation will reach more than 70 percent.
3. Egypt
Egypt’s inflation soared nearly 15 percent in April 2022, leaving a third of its 103 million population living in poverty.
Egyptians are already suffering because their government’s ambitious reform program has made their currency float and cut subsidies for fuel, water and electricity.
Not to mention, the central bank’s policy of raising interest rates in order to curb the rate of inflation has trapped the government in difficulty in paying off the accumulated foreign debt.
4. Laos
This small landlocked country in Southeast Asia actually recorded the fastest economic growth before the COVID-19 pandemic hit.
But, since the pandemic, the debt has jumped exactly as Sri Lanka has. For three dollars, Laos is also forced to beg for debt restructuring worth billions of dollars.
The problem is even more complicated because according to the World Bank, Laos’ foreign exchange reserves are left with less than two months of imports. Its currency fell 30 percent, exacerbating the country’s woes.
5. Lebanon
Like Sri Lanka, Lebanon also suffered as its currency fell by 90 percent. Not to mention, the spike in inflation, which resulted in a food crisis and an energy crisis.
Lebanon is suffering from an economic crisis due to a long civil war, which has hampered the country’s recovery and government dysfunction, as well as terror attacks.
Worse, Lebanon failed to pay their debts worth US $ 90 billion. The debt ratio also increased to reach 170% of GDP.
The World Bank says Lebanon’s economic crisis ranks as one of the worst in the world in more than 150 years.
Bankruptcy due to Hyperinflation and Corruption
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