Countries that could go broke in 2018
lovemoney staff
22 December 2017
The nations teetering on the edge of bankruptcy
Battered by everything from hyperinflation to unsustainable debt, the planet's worst economies are in dire straits. Using the United Nations' World Situation and Economic Perspectives report for next year as a guide, we reveal the countries that could very well go broke in 2018.
Equatorial Guinea
Heavily dependent on oil, Equatorial Guinea is still struggling to adapt to the lower price of the commodity and has been trapped in a seemingly never-ending cycle of profound recession since 2013.
Equatorial Guinea
At the same time, public debt has been skyrocketing, and the debt to GDP ratio in Equatorial Guinea has risen significantly in recent years.
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Equatorial Guinea
Unfortunately, the country's economic health doesn't look like improving in the foreseeable future with negative growth on the cards, and may even worsen further. Unless, of course, the price of oil recovers miraculously in 2018.
Haiti
Haiti has had to contend with natural disaster after natural disaster in recent years, the most recent of which were Hurricanes Irma and Maria, which hit the country within two weeks of each other in September.
Haiti
The country's financial situation is expected to improve modestly next year, on the back of the ongoing reconstruction of infrastructure and improvements to farming, yet the economy faces a variety of threats.
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Haiti
Increased political instability, worsening macroeconomic imbalances and another devastating natural disaster in Haiti could throw off the recovery and plunge the country into severe financial crisis.
Zimbabwe
Since 2000, Zimbabwe has gone from Africa's booming bread basket to its most notorious economic basket case, running the gambit of financial disasters, from extreme hyperinflation to deep recession.
Zimbabwe
Despite the ousting of President Robert Mugabe and a change in leadership in the country, the economic prospects for 2018 are anything but rosy.
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Zimbabwe
In fact, the leadership transition is likely to trigger further instability, impacting on an already ailing economy, which is plagued by stupidly high debt, a chronic lack of liquidity and a bewildering unemployment rate, which some estimates put as high as 95%.
Mozambique
Drowning in debt, Mozambique defaulted on its dues several times in 2017, missing a number of bond repayments, notably in January, and the government is still struggling to make ends meet and pay its creditors.
Mozambique
Mozambique is on verge of going broke and the financial forecast is far from bright in 2018 for the impoverished African nation.
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Mozambique
A toxic combination of excessively high debt and simmering political tensions in the country is expected to depress economic growth and discourage foreign investment, according to the UN report.
South Sudan
South Sudan is another African country in crisis. Gripped by conflict, the economic situation in the country has been exacerbated by a severe drought, which has led to poor harvests and reduced agricultural output.
South Sudan
On top of the ongoing lack of rainfall, a downturn in the production of oil, South Sudan's number one export, is hitting the economy hard.
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South Sudan
Things are likely to get worse in South Sudan before they get better. In fact, experts have revealed that the country desperately needs $1.7 billion (£1.3bn) in aid to avoid economic collapse and avert a devastating famine.
Yemen
The brutal civil war has plunged Yemen into an unprecedented humanitarian crisis with famine a distinct possibility, and decimated the country's economy.
Yemen
Hyperinflation is raging and agricultural and oil production, the mainstays of the Yemeni economy, have been severely disrupted.
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Yemen
Next year, Yemen's economy is expected to grow, but only because it hit rock bottom in 2017. And if the civil war intensifies further, total financial meltdown will not be an unlikely prospect in the conflict-ravaged country.
Venezuela
The oil-reliant Venezuelan economy is in a shambles, with a large proportion of the population now living in abject poverty, subject to frequent shortages of food and other essentials.
Venezuela
The bolivar has lost an incredible 99.97% of its value against the dollar since 2012, hyperinflation is kicking in, and political and social tensions are running high.
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Venezuela
While the government is planning to refinance and restructure its sky-high external debts, confidence that the plan will work out is low and the economy is expected to contract in 2018, deepening the economic catastrophe in the country.