Conflict-ridden developing economies see poverty rise and growth stall, World Bank warns

In fragile and conflict-affected situations, economic development is increasingly elusive as violence erodes productive capacity and deepens poverty. This World Bank press release highlights that 39 such economies have seen per-capita GDP shrink by about 1.8 % annually since 2020, while peers grow at nearly 2.9 %, trapping nearly 421 million people on under $3 a day and pushing extreme poverty toward 60 % of the global poor by 2030. Conflict’s drag on investment, jobs and human capital not only stifles economic growth but risks fiscal fragility and rising debt, undermining long-term development prospects.

(https://www.worldbank.org/en/news/press-release/2025/06/27/fragile-and-conflict-affected-situations-intertwined-crises-multiple-vulnerabilities)

Extreme Poverty is Rising Fast in Economies Hit by Conflict, Instability

1. Explain how conflict contributes to an increase in extreme poverty. Use examples from the World Bank article.

2. Assess how conflict reduces economic growth in developing countries.

3. Discuss how conflict and extreme poverty together restrict economic development.