Frontier markets fail to live up to economic potential, says World Bank
The World Bank reports that frontier markets have not met their economic potential, with investment growth per person slowing to 2% in the 2020s, less than half of previous decades. These economies, home to 20% of the global population, contribute only 3.1% of capital flows and underdeveloped financial systems hinder growth. Rapid population increases and rising debt burdens, alongside stagnant revenues, pose significant challenges. Countries like Zambia and Ghana have defaulted on debts, highlighting the need for improved fiscal discipline and foreign direct investment to address demographic pressures and economic stagnation.
Reuters·
