Half of the world's most vulnerable economies are facing a "historic reversal" in terms of an income gap with the wealthiest countries, the World Bank said in a new report on Monday.
"Over 2020-24, average per capita incomes in half of IDA countries — the largest share since the start of this century — have been growing more slowly than those of wealthy economies," the report said.
The report, "The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries," notes that the situation arises despite these countries being rich in natural resources and mineral deposits and having high potential for solar-energy generation.
"Yet a historic reversal is underway for them," the report said.
The extreme poverty rate in these countries is more than eight times the average in the rest of the world, with every fourth individual struggling on less than $2.15 per day, the report said.
About 90% of the population of 2 billion people living in the world's most vulnerable economies is facing hunger or malnutrition, and half of such countries are either in debt distress or at high risk of it, the report said.
"One out of three IDA countries is poorer, on average, than it was on the eve of the COVID-19 pandemic," the report said, referring to the acronym for the World Bank’s International Development Association.
However, the report also said that the affected countries can overcome the setback if they take full advantage of their younger populations, rich natural resources and abundant solar-energy potential.
The welfare of these countries has always been crucial to the long-term outlook for global prosperity, the World Bank said.