Congo Ranked Fourth Poorest Country in the World
The Democratic Republic of Congo (DRC) has been ranked as the fourth poorest country in the world by Global Finance, an American magazine renowned for its financial institution rankings.
This grim ranking reflects the ongoing economic challenges faced by a nation rich in mineral resources but plagued by economic instability.
Despite its vast mineral wealth, the DRC struggles with severe economic hardships. According to a recent report from the International Monetary Fund (IMF), the DRC’s average annual purchasing power per capita is less than $1,500. This low GDP per capita places the country among the top five poorest nations globally.
The IMF’s latest World Economic Outlook sheds light on the worsening economic conditions in the DRC and similar nations. “Declining growth implies a deterioration in prospects or living standards and a reduction in global poverty. A persistently low-growth environment, coupled with high interest rates, would threaten debt sustainability and could fuel social tensions and hamper the green transition. In addition, expectations of lower growth can discourage investment in capital and technology and thus, in part, become self-fulfilling,” the report states.
The DRC’s economic decline has been particularly pronounced over the past five years under the leadership of President Félix Tshisekedi. The national currency, the Congolese franc, has hit historic lows against the US dollar, exacerbating the economic woes of the population.
Africa, as a continent, continues to feature prominently at the lower end of global economic rankings, although some countries have shown improvements in their standings.
The persistent poverty in the DRC, however, underscores the cyclical nature of poverty where low economic growth leads to further impoverishment.
The current economic situation in the DRC not only affects individual living standards but also has broader implications for social stability and development. High interest rates and low investment in capital and technology further compound the challenges, making economic recovery a distant goal.
Source: DRC News Today
