From debt to hunger, poor countries could face an unprecedented wave of crisis
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This brief highlights how the war in Ukraine could hit poor countries twice by fuelling a food and debt crisis.
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An increasing number of low-income countries emerged from the Covid-19 pandemic with unsustainable levels of indebtedness. Even before Russia’s invasion of Ukraine, about 60% of low-income countries – most of them in Sub-Saharan Africa – were at high risk of or already in debt distress. A country is declared in debt distress when it is experiencing difficulties in servicing its debt payments.
The war in Ukraine is casting a long shadow over the world economy and could push poor countries further into a food crisis.
Due to limited fiscal space and inadequate social protection, the food crisis will hit the poorest households and could lead to an unprecedented hunger crisis.
This is why ICC is calling on G20 leaders to suspend debt payments for all countries in need to avoid a global debt crisis. To this end, ICC urges finance ministers and international organisations to: