All these extremely fragile and underdeveloped economies have either recently been through a civil war or are suffering from ongoing sectarian or ethnic conflicts. 

Author: Jonathan Gregson
Project Coordinator: Edith Updike

7. Mozambique

Current International Dollars:  1,228 | Click To View GDP & Economic Data

The former Portuguese colony of Mozambique remains this year at seventh in the table of the world’s poorest countries. The country has high hopes of transforming its economy based on the prospects of gas fields discovered off its coast in 2011, which are planned to come on stream in 2018. However, the discovery in April 2016 of previously undisclosed debt worth $1.4 billion (10.7% of GDP) led to the IMF suspending aid to the country. Mozambique’s fiscal position is now under severe stress, with debt obligations falling due well before the gas mega-projects yield significant revenues. The country does not expect to be able to repay loans until 2021 and urgent debt negotiations are underway. Meanwhile the last decade’s rapid economic expansion has yet to filter down to many of the population who continue to live well below the poverty line and whose livelihoods remain at risk from adverse climatic conditions.
 


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