Ukraine war could increase shocks for developing countries, UN warns

(United Nations News) The fallout from the war in Ukraine could dramatically worsen the economic outlook for developing countries already grappling with debt financing related to the COVID-19 pandemic, the UN said in a report published on Tuesday. 

While rich nations were able to support their pandemic recovery with record sums borrowed at ultra-low interest rates, the poorest countries spent billions servicing debt, thus preventing them from investing in sustainable development. 

COVID-19 pushed 77 million more people into extreme poverty in 2021, while many economies remained below pre-2019 levels, according to the Financing for Sustainable Development Report: Bridging the Finance Divide. 

Furthermore, it is estimated that one in five developing countries will not see their Gross Domestic Product (GDP) return to 2019 levels by the end of next year, even before absorbing the impacts of the Ukraine conflict, which is already affecting food, energy, and finance across the globe. 

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Source: CARICOM TODAY