World Bank Publishes "Finance and Prosperity 2024" Report Amidst Multiple Crises in Emerging and Developing Economies
The World Bank has released a report titled "Finance and Prosperity 2024", which comes at a time when emerging and developing economies (EMDE) are facing multiple crises.
This report is the first in an annual series, aiming to analyze the developments and vulnerabilities of the financial sector in developing countries.
According to the report, while financial sector risks in large, high-income emerging economies remain moderate, half of low-income countries are expected to face substantial risks over the next 12 months. Nearly 70% of countries facing high financial sector risks are not adequately prepared to manage financial tensions.
As the link between states and banks is in crisis, several financial sectors in the Middle East and North Africa are facing high risks.
Risks are particularly high in Tunisia and Egypt, due to a combination of high exposure of banks to the central government and non-financial public enterprises, as well as a challenging macroeconomic context.
Even in more stable economies like Morocco, Jordan, and the Gulf Cooperation Council (GCC) countries, a new escalation of the conflict between Israel and Gaza could hinder growth.
