12 COUNTRIES that could COLLAPSE in 2023

did you know that Argentina is the largest debtor to the international monetary fund the country has a 45 billion dollar program that was approved in 2022 public debt has reached record levels putting the country in a very complicated situation but this is not the only nation facing such problems so today I will talk about countries that could collapse in 2023 if you want to find out what challenges these places are facing stay tuned number one Argentina in June 2022 the Argentine government's gross debt Rose to 378.518 billion a historic amount that is eight times the credit Argentine took in 2018 which was renewed in March for 45 billion for some years now the country's debt level has been a subject of debate in the economic and political Arena experts have warned that 2023 could be a really difficult year for the Argentine economy as heavy payments that have been postponed will begin this year the debt model Argentina acquired is extremely risky as it must pay more and more in interest of the total maturities that will be paid in 2023 three out of every ten dollars to be returned represent interest and six out of ten are with International organizations it is estimated that 2023 and 2024 will be the most complicated years in terms of paying off the debt with the international monetary Fund in the past the country has already defaulted on debt payment terms and repayment plans had to be adjusted number two Ukraine Ukraine situation is very complicated the ongoing Russian invasion of its territory which is why it's almost certain that they will have to restructure their debt of more than 20 billion dollars in September 2023 a crisis could arise as Bond payments of 1.2 billion are due Ukraine's state-owned gas company NAFTA gas has asked International creditors to defer debt payments for two years and it is believed that the Ukrainian government could make a similar request regarding its own debt on the other hand it has been estimated that the country will need to invest over 100 billion dollars to rebuild all the infrastructure damaged by the bombings and the armed conflict for this reason some experts agree that the best strategy the Ukrainian government can follow is to temporarily halt Bond payments through an agreement it is still unknown what the real impact of the war with Russia will have on Ukraine's economy or whether the government will be able to meet all its Financial commitments in 2023 although it has officially announced that it will according to estimates the Ukrainian economy will contract by 35 percent and its economic activity will be marked by damage to crops and a decrease in the workforce as seven million people have become refugees and another 7 million have been forced to internally displace due to war the World Bank estimates that Ukraine will need at least 349 billion dollars to recover from the impacts of War which is 1.5 times the size of the Ukrainian economy in 2021. on the other hand poverty in the country will increase and it is believed that the percentage of the population living below the poverty line could reach 60 percent number three Tunisia Tunisia is one of the countries currently at greatest risk as it has a budget deficit of almost 10 percent and one of the highest wage bills in the public sector the country is just a few steps away from facing a financial crisis and has been trying since July to reach a new loan agreement in exchange for a controversial package of reforms the reform plan includes freezing wages stopping hiring in the public sector reducing energy and food subsidies and selling shares of state-owned companies the workers union opposed this reform and organized a national strike the country has been affected by the global consequences of the war between Ukraine and Russia and for this reason the Tunisian government approached the international monetary fund seeking a loan of up to four billion dollars in exchange for reforms the workers union has said that the reforms could cause great discontent and social collapse as purchasing power will fall and inflation will rise on the other hand Tanisha is facing the worst political crisis since the 2011 Revolution as Tunisian president kais Saeed dismissed Parliament and began governing by decree a measure that has been heavily questioned by his opponents and various voices all this in the context of the war has greatly complicated tunisia's situation as the armed conflict has made Imports of cereals and hydrocarbons more expensive which the country depends on further aggravating the crisis that has been developing for a decade the financial crisis has led to shortages of basic Goods in Tunisia such as flour sugar and coffee which has sparked strong protests against the president who is blamed for the situation which has worsened since he came to power in 2019 number four Ghana Ghana has had to resort to Urgent loans and its currency lost a quarter of its value during 2022 while inflation in the country soared to 30 percent government finances are at their weakest Point as Ghana faces a deep crisis the situation originated several decades ago as the Ghanaian government had accumulated so much debt by 2000 that it began to have trouble meeting its payments it was decided that the country would subscribe to the international monetary fund and the world bank's highly indebted poor country's initiative by the end of this initiative in 2006 Ghana's debt was 780 million dollars equivalent to 25 of its GDP from that moment until today the debt has increased by seven thousand percent reaching 54 billion dollars or 78 percent of GDP according to Specialists the Canadian government has repeatedly failed to build a solid economy leading the country to depend on foreign financing the international monetary fund has stated that in addition to restructuring its debt Ghana needs to limit its borrowing and respect fiscal responsibility laws the truth is that the crisis worsened December 2022 and the country announced the suspension of payment on some of its external debts including eurobonds arguing that the bank of Ghana's International reserves were limited as were the rest of its Financial Resources at the same time various protests have erupted in the streets leading Ghana to a very unstable situation number five Egypt Egypt currently has a debt to GDP ratio of 95 percent and sought help from the international monetary Fund in March 2022 the country is facing New Economic pressures since the outbreak of the war between Ukraine and Russia as foreign investors massively abandoned this and other emerging markets in recent Years Egypt has had to resort to the international monetary fund three times as in 2016 it requested a loan of 12 billion dollars in May 2020 one of 2.8 billion dollars and in June 2020 one of 5.2 billion dollars in addition to high debt other problems Egypt faces are inflation and scarce foreign currency liquidity the Egyptian economy has received a series of blows in recent years but one of the most severe stemmed from the consequences of the Russian invasion of Ukraine since March 2022 the Egyptian currency lost a quarter of its value and inflation reached 15 percent while product prices have continue to rise daily the country is in a difficult situation as it Imports 80 percent of its wheat from Russia and Ukraine so the government has adopted drastic measures to curb inflation somewhat such as Banning the importation of a series of products among the plans for the country to recover from the crisis is to create an incentive package to increase the private sector's contribution to the economy to 65 percent and attract foreign investors number six Kenya currently Kenya is spending 30 percent of its revenues on interest payments and its bonds have lost almost half of their value Kenya's public debt Rose from 68.5 percent in 2020 to 70.3 percent in 2022 the country is experiencing a severe food crisis due to Drought High inflation climate disasters and internal conflicts the economic crisis was exacerbated by the covid-19 pandemic the severe drought which has been the worst in four decades and the war in Ukraine Kenyans have deeply suffered this crisis and a large part of the popular relation has had to cut their daily meals from two to just one this has led to demonstrations demanding lower prices for basic Goods which skyrocketed as a result of the war as the country Imports a fifth of its grains from Russia and 10 percent from Ukraine since 2008 Kenyan governments have carried out a plan called Vision 2030 that includes large infrastructure projects which led to the debt quadrupling to nearly 70 billion dollars this high debt and Investments has not translated into a better standard of living for citizens number seven Ethiopia economic progress in Ethiopia has been hampered by the Civil War in 2020 the Ethiopian government requested a debt reduction and a budgetary aid package of 150 billion dollars to support several African countries that were in economic trouble due to the coronavirus pandemic in addition to the covid-19 crisis the country has faced an armed conflict since 2020 that has left thousands dead Millions displaced and thousands of people suffering from Hunger this War began in November 2020 two years after ABI Ahmed came to power who was poorly received by the Tigre people's Liberation Front the Tigre region has been severely affected since the conflict broke out and currently has no internet service food or medicine in this context the country has continued to pay its only international bond of one billion dollars and seeks to obtain debt relief under the g20's common framework program number eight El Salvador in August 2022 El Salvador approved the extension of several laws to alleviate the country's economic crisis and thus keep fuel prices low on the other hand the Salvadoran government decided to invest part of the national treasury in Bitcoin a cryptocurrency that has been on the decline since late 2021 president nayi bukele promoted Bitcoin as legal tenders since September 2021. a time when it was also decided to invest part of public finances in this cryptocurrency this turned out to be a bad decision as since the Salvadoran government's first Bitcoin purchase to date the currency has lost 67 percent of its value resulting in an estimated loss of 70 million dollars International analysts have warned that El Salvador could default on debt payments and various Specialists have agreed that adopting Bitcoin as a currency was not a good decision number nine Pakistan Pakistan's foreign exchange reserves have fallen to a low of 9.8 billion dollars which is barely enough for five weeks of imports while the Pakistani rupee has weakened historic lows currently the government allocates up to 40 percent of its revenues to debt interest payments the high cost of energy Imports has pushed Pakistan to the brink of a balance of payments crisis prompting an agreement with the international monetary fund to pull the country out of its economic difficulties the agreement means that the country will receive 1.17 billion dollars as it has entered a program with the fund that could also open up new avenues for external financing the government faces the challenge of reducing debt and increasing Revenue in 2023 focusing on higher income taxpayers while protecting development spending Pakistan's new government decided to withdraw unfunded subsidies from the oil and energy sectors which have been granted by the previous prime minister during his last days in office additionally a Le'Veon oil was imposed increasing prices by 70 percent number 10 Belarus Belarus has faced sanctions from the European Union for supporting Russia in its invasion of Ukraine Financial sanctions include financing restrictions on some banks a ban on transactions involving the assets and reserves of the Belarusian Central Bank and the disconnection of five Belarusian Banks from the Swift system a large-scale network that facilitates the movement of capital between countries importation in key sectors of the country's economy such as hydrocarbons potash transportation and raw materials has also been banned in the war between Russia and Ukraine Belarus has played a crucial role on one hand it has been responsible for organizing meetings between Russian and Ukrainian delegates but it has also provided its territory for Russian military military deployment amid this conflict a change in the Belarusian Constitution was voted on to reintroduce nuclear weapons moreover it has been suggested that Belarusian troops could join the invasion in a joint military operation the extent of the damage this Alliance will bring to the country is still unclear number 11 Ecuador Ecuador has been plunged into a new crisis with violent protests and an attempt to overthrow president Guillermo lasso the protest led to food and Medicine shortages and a drastic reduction in oil production to ease social unrest the governments announced Cuts in gasoline prices debt forgiveness and subsidies for fertilizers but it was not enough amid the crisis oil production fell by 1.8 million barrels as blockades prevented the transportation of supplies to oil blocks this resulted in a loss of 166.4 million dollars in the oil sector meanwhile discontent persisted with protesters demanding lower fuel prices and increased investment in health and education this unfavorable scenario is further Complicated by the Ecuadorian government's high debt level as forecasts estimate an increase in the public sector fiscal deficit to 2.4 percent of GDP the country has had more than a decade of consecutive fiscal deficits with 2008 being the last year a surplus was recorded the worst historical deficits were recorded in 2014 and 2020 exceeding 6 billion dollars while the deficit for 2022 was 2.3 billion dollars currently the Ecuadorian economy depends on tax and oil revenues but the latter are variable while tax revenues are insufficient to cover current expenditures which are mostly public salaries and wages for 2023 the government plans to issue bonds abroad again implying more debt which reached 74.03 billion dollars in 2022 of which 46.455 billion corresponds to external debt number 12 Nigeria Nigeria spends nearly 30 percent of its revenue on paying interest on its debts although the country is a leader in international crude oil production and oil is its main source of income these benefits have not trickled down to Nigerian society which remains deeply unequal on the other hand Nigeria's energy transition plan will eliminate fuel subsidies and increase energy costs for most Nigerians the World Bank has pushed for these measures even though experts have pointed out that the price hikes will increase poverty in the country it has been noted that poor government management and the crisis stricken economy with a mounting debt burden have exacerbated poverty raising the cost of goods and services another serious issue is that theft of crude oil and the non-functioning of refineries Nigerian governments have resorted to unnecessary borrowing and the poor economic state has led to a massive migration of human capital particularly professional workers leaving the nation without valuable contributions in this context the outlook for 2023 appears challenging for this African country are you from any of these countries leave your opinion and thoughts on the situation in the comments if you want to know one of these countries visit this video about Ghana if you liked it give it a thumbs up and subscribe with the Bell icon activated

Channel: Lifeder En

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Length: 16min 31sec (991 seconds)

Published: Wed May 24 2023