United Nations has said that more than 77 million people slipped into poverty in 2021 as governments struggled to service debts and secure early vaccine access. The UN in a report released yesterday, said, rich countries managed to avoid the worst economic impacts of the coronavirus pandemic but poorer ones continue to deal with debilitating debt.
On average, rich countries spend 3.5% of their revenue on servicing debt while less rich nations use up to 14% of revenue, according to the UN.
The report said some 20% of countries will not return to pre-2019 levels of GDP per capita by the end of 2023. The poorest countries pumped billions into servicing debts and were forced to cut spending on education and infrastructure, the report noted. The UN earlier said that soaring food and fuel prices amid the Ukraine situation are already impacting import-dependent countries.
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