After several years of multiple, continuous shocks, the global economy is finally showing signs of stabilizing. Despite the grimmest predictions, the world managed to avoid a global recession this year. Roughly 8.5 percent of the global populationlive in extreme poverty on less than $2.15 a day, revealed a World Bank report.
However, while advanced economies have largely recovered, developing countries have yet to catch up. Low-income countries risk being left even further behind—despite the vigorous efforts of the World Bank’s International Development Association (IDA), which is now their main financial lifeline.
The world faces a harsh reality: despite decades of progress, ending extreme poverty everywhere by 2030 is out of reach. Amid anemic economic growth, the lasting effects of the COVID-19 pandemic, crushing debt burdens, and rising fragility and conflict, the pace of reducing global poverty has effectively stalled. Devastating climate shocks and extreme weather threaten to slow or reverse progress even more.
As we close out the year, here are some of the most pressing development issues countries faced in 2024 and how the World Bank Group is working with them to overcome these challenges.
“Today, about 700 million people—or 8.5 percent of the global population—live in extreme poverty on less than $2.15 a day. Around 3.5 billion people live on less than $6.85 a day, the poverty line more relevant for middle-income countries, which are home to three-quarters of the world’s population. Without drastic action, it could take decades to eradicate extreme poverty and more than a century to eliminate poverty as it is defined for nearly half of the world,” said a World Bank report, a copy of which was made available to The Egyptian Gazette.
Poverty goes beyond a lack of income. It can also include insufficient access to education, health, electricity, or basic services such as safe drinking water or sanitation. As of 2024, over one-third of people in countries eligible for support from the World Bank’s IDA and more than half of those in Sub-Saharan Africa are experiencing multidimensional poverty, highlighting how persistent development challenges remain.
Earlier this month, the global community came together to reaffirm their commitment to IDA, which offers concessional lending to 78 low-income countries.
“The 21st replenishment of IDA raised $23.7 billion to boost development for these countries for 2025-28. Thanks to IDA’s unique leveraging model, this will generate $100 billion in affordable financing to help countries spur job growth, deliver better quality health care, improve education, expand electricity access, enhance food security and nutrition, and much more,” it added.
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