World Bank sounds pessimistic: Only 6 out of 26 countries will be able to reach 'middle-income' status by 2050

The World Bank has published the section of its Global Economic Prospects Report, due in January 2025, covering the performance of 26 low-income economies.

In a statement from the Bank, it was noted that the next 25 years could be decisive in determining whether the world's 26 poorest countries will transition to middle-income status.

Pointing out that these countries are home to more than 40 percent of people struggling to live on less than $2.15 a day, the statement emphasized that these nations are the focal point of global efforts to end extreme poverty.

The statement highlighted that progress in these countries has stalled due to increasing conflicts, frequent economic crises, and persistently weak growth.

Noting that progress has largely bypassed these countries over the last 25 years, the statement recalled that the World Bank classified 63 countries as "low-income" at the beginning of the 21st century.

The statement indicated that 39 countries, including India, Indonesia, and Bangladesh, have joined the ranks of "middle-income" countries, while Syria and South Sudan joined the "low-income" category in the 2010s. It was reported that these countries have stagnated, with per capita gross domestic product growing by less than 0.1 percent annually over the last 15 years.

In the World Bank's statement, it was noted, "Without a sustained improvement in growth rates, only 6 of today's low-income countries are likely to reach middle-income status by 2050."

"VULNERABLE TO CLIMATE CHANGE"

The statement noted that these countries face greater constraints than previous generations, with 17 of them suffering from conflict or fragility, and death rates 20 times higher than levels in other developing economies.

Stating that almost all of these countries are vulnerable to climate change, the report noted that most are either in debt distress or at high risk.

The statement pointed out that these countries also possess significant natural advantages that could lift them to a higher standard of living, stating, "Today's low-income countries, which hold more than 60 percent and 50 percent of the world's known cobalt and graphite reserves respectively, possess some of the largest known deposits of metals and minerals needed to produce and store renewable energy. Their solar energy production potential is among the highest in the world. 

Furthermore, the working-age population, a powerful engine for economic growth, is growing rapidly in these countries while shrinking almost everywhere else."

Referring to the efforts of countries like Nepal and Rwanda that have successfully risen to middle-income levels, the statement emphasized that low-income countries could draw inspiration from poor countries that have previously succeeded in climbing the income ladder over the next 25 years.