Jakarta, CNBC Indonesia – After the pandemic, now the world still has to face global economic and geopolitical challenges that have yet to find a bright spot. This has an impact on a number of countries that have the potential to experience bankruptcy.
According to the report AP, the causes of the economic crisis faced by each country are different from one another. However, globally, the main factor causing the country’s economic downturn is soaring inflation.
When inflation rises, people’s purchasing power will be eroded, which in turn will have an impact on economic growth.
In Sri Lanka, inflation was recorded to have skyrocketed 54.6% year-on-year (yoy), becoming the highest record in history. The high inflation started from the disease pandemic caused by the corona virus (Covid-19).
At that time, the global economy almost stopped completely, because many countries implemented policies lockdown. When vaccinations have been intensively carried out and the addition of new cases has decreased dramatically, lockdown lifted, social restrictions are no longer strict, people’s lives are slowly returning to normal.
As a result, demand to increase, unfortunately it has not been able to be offset by supply. The laws of economics also work, when demand Higher than supplythen inflation occurs.
This was exacerbated by Russia’s war with Ukraine. Sanctions imposed by the United States and the Allies on Russia caused the price of crude oil to soar, as well as natural gas and coal. The energy crisis also hit, which made inflation even higher.
As a result of this situation, the World Bank even issued a warning to a number of countries with the potential for bankruptcy, such as Sri Lanka.
In the UN Crisis Response Group report last week, at least nine countries were said to have the potential to suffer the same fate as Ceylon. Among them, Afghanistan, Argentina, Egypt, Laos, Lebanon, Myanmar, Pakistan, Turkey and Zimbabwe.
Meanwhile, there are at least 25 countries in the world that are threatened with bankruptcy. The list was revealed in a survey conducted by an economic research institute, Visual Capitalist.
A total of 25 countries that are threatened with bankruptcy are derived from data on four calculation metrics, namely government bond yields, 5-year credit default swaps (CDS), interest expenses as a percentage of gross domestic product (GDP), and government debt as a percentage of GDP. .
The following is a list of 25 countries that are threatened with bankruptcy:
1. El Salvador
2. Ghana
3. Tunisia
4. Pakistan
5. Egypt
6. Kenya
7. Argentina
8. Ukraine
9. Bahrain
10. Namibia
11. Brazil
12. Angola
13. Senegal
14. Rwanda
15. South Africa
16. Costa Rica
17. Gabon
18. Morocco
19. Ecuador
20. Turki
21. Republic of Dominica
22. Ethiopia
23. Colombia
24. Nigeria
25. Mexico
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