Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
The global economy is interconnected, and understanding the financial challenges faced by the world’s poorest nations is crucial for traders looking to navigate today’s markets.
The World Bank’s 2024 report highlights the 26 poorest countries, outlining the severe economic hardships they face and how these struggles impact global trading. From high debt levels to natural disasters and conflicts, these nations are vulnerable to multiple risks that shape global market trends.
This article delves into these countries’ economic challenges, their global significance, and why they matter to traders.
The 26 poorest countries: An overview
The 26 poorest countries, as identified by the World Bank, are classified as low-income economies with a gross national income (GNI) per capita of USD 1,135 or less. These nations are home to some of the world’s most vulnerable populations and face severe financial difficulties. They rely heavily on International Development Association (IDA) funding, a critical financial lifeline that helps sustain their economies.
These countries, many of which are located in sub-Saharan Africa and South Asia, face persistent poverty, political instability, and are largely dependent on commodities exports such as agriculture, metals, and oil. Their reliance on commodities makes them highly susceptible to global market fluctuations, and the lack of economic diversification only amplifies the effects of price volatility.
Furthermore, these countries are more affected by economic shocks than the rest of the world, especially as they struggle to recover from the impacts of the COVID-19 pandemic. While most countries have resumed growth, these low-income nations have continued to fall behind, further deepening the gap between them and wealthier economies.
Key economic challenges
The economic challenges faced by these countries are multifaceted and deeply entrenched. Three major issues dominate their economic landscape: debt, natural disasters, and political instability.
1. Debt: The average debt-to-GDP ratio for these countries stands at 72%, the highest level in 18 years. Many of these nations are either in debt distress or at high risk of it. Their dependence on IDA grants and low-interest loans has become critical, as market financing options have largely dried up. This level of indebtedness constrains their ability to invest in infrastructure and development, limiting economic growth and perpetuating cycles of poverty.
2. Natural disasters: Natural disasters pose a significant threat to these economies, causing annual GDP losses of approximately 2%, which is five times higher than the average in lower-middle-income countries. These countries are particularly vulnerable to climate change, and their limited financial capacity hampers efforts to build disaster resilience. This repeated damage to infrastructure and agriculture places additional strain on their already struggling economies.
3. Conflict and fragility: Two-thirds of the 26 poorest countries are either in active conflict or face institutional fragility, which discourages foreign investment and economic development. The inability to maintain order and stability means that many potential investors are deterred by the risks associated with political instability and armed conflict. This fragility also stifles efforts to improve governance, further limiting their chances for sustainable growth.
The role of the International Development Association
The International Development Association, a branch of the World Bank, provides grants and low-interest loans to support low-income countries.
Over the past five years, the IDA has focused on the 26 poorest nations, raising a record USD 93 billion in 2021 and aiming for USD 100 billion by 2024.
This aid helps stabilise economies facing challenges such as debt, political instability, and natural disasters. However, it also highlights the need for long-term solutions to reduce their reliance on international aid.
Impact on global markets and traders
For traders, understanding the economic struggles of these nations is not just about global awareness—it’s essential for risk management. The interconnectedness of the global economy means that the challenges faced by these countries can have ripple effects in global commodity markets.
Many of the 26 poorest countries are key exporters of commodities such as oil, metals, and agricultural products. When political instability, debt crises, or natural disasters disrupt production, it can lead to price fluctuations in the global markets. For example, a conflict in a major oil-producing low-income country can tighten global oil supplies, causing prices to spike. Similarly, droughts or floods in agricultural nations can lead to significant disruptions in the supply of key commodities, affecting global prices and trade volumes.
Traders, especially those involved in commodity trading, need to stay informed about the political and economic developments in these countries to manage their portfolios effectively. By doing so, they can anticipate market movements and make more informed decisions when trading affected commodities.
Recommendations for economic recovery
The World Bank report provides several recommendations for helping these nations overcome their economic challenges. While external support, such as IDA funding, remains critical, these countries must also implement internal reforms to improve their economic prospects.
1. Tax reforms: Simplifying taxpayer registration and improving tax administration are essential steps for these nations to increase revenue. This would create additional fiscal space for governments to invest in infrastructure, education, and healthcare, all of which are critical for long-term economic development.
2. Public spending efficiency: Improving the efficiency of public spending is another crucial reform. By allocating resources more effectively, these countries can make better use of their limited funds, particularly in areas such as disaster resilience, infrastructure, and social services.
3. Economic diversification: Reducing reliance on commodity exports is necessary for building more resilient economies. By investing in other sectors such as manufacturing, services, and technology, these countries can create new avenues for growth and reduce their exposure to global commodity price volatility.
Conclusion
The economic struggles of the world’s poorest countries are not isolated issues—they are deeply connected to the global economy and have significant implications for traders. For those looking to manage risk in commodity markets, staying informed about the economic health of these countries is essential.
Ready to explore new trading opportunities and stay ahead of global market trends? Open a live account with VT Markets today and access expert insights, cutting-edge tools, and a world of trading opportunities that allow you to make informed decisions in a complex global economy.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on October 15, 2024 at 10:48 am, by anakin
VT Markets ofrece una amplia gama de productos de trading, cada uno con horarios específicos. Para conocer los horarios de trading de un producto, haz clic derecho en el producto dentro de tu plataforma de trading y selecciona “Especificación”.
¿Cómo reportar un problema de trading?
Si tienes algún problema relacionado con el trading, envía un correo electrónico a trading@vtmarkets.com con los detalles de tu cuenta y capturas de pantalla o videos de tus órdenes en MT4/MT5. Nuestro equipo investigará y responderá en un plazo de 1 a 3 días hábiles.
¿Qué es el precio de compra (Ask) y el precio de venta (Bid)?
En línea con las prácticas financieras globales, existe una diferencia entre el precio de compra (ask) y el precio de venta (bid). El precio ask, generalmente más alto, es para inversores que esperan un aumento en el precio, mientras que el precio bid es para aquellos que anticipan una disminución.
Explicación de los Tipos de Órdenes:
Órdenes de compra (Buy Orders): Se inician al precio ask y una posición larga genera beneficios cuando el precio de mercado sube por encima del precio de apertura.
Órdenes de venta (Sell Orders): Se inician al precio bid y una posición corta genera beneficios cuando el precio de mercado cae por debajo del precio de apertura.
¿Qué significa el lado (compra/venta) de las órdenes?
Una orden de compra (posición larga) se abre cuando se cree que el precio de un activo subirá. Se inicia al precio ask y se cierra al precio bid. El beneficio ocurre si el valor del activo sube.
Una orden de venta (posición corta) se abre cuando se espera que el precio de un activo disminuya. Se inicia al precio bid y se cierra al precio ask, obteniendo beneficios si el valor cae.
¿Puedo mantener posiciones largas y cortas en el mismo mercado al mismo tiempo? ¿Es posible cubrirse (hedging)?
VT Markets permite mantener posiciones largas y cortas simultáneamente en la misma cuenta para el mismo producto, conocido como “bloqueo de posiciones”. Usa las funciones “Multiple Close By” o “Close By” en MT4 para cubrirte. Nota: No se permite la cobertura entre múltiples cuentas.
¿Existe un límite en el volumen de una posición abierta?
No hay límite en el volumen de posiciones abiertas en VT Markets, pero cada cuenta está limitada a un máximo de 1,000 órdenes, incluyendo posiciones abiertas y órdenes pendientes. Los volúmenes mínimos y máximos por orden dependen del producto y pueden encontrarse en la sección “Especificación” de MT4/MT5.
¿Por qué mi saldo de cuenta se volvió negativo? ¿Cómo lo soluciono?
El trading apalancado puede amplificar ganancias, pero también aumenta el riesgo de incurrir en pérdidas mayores a tu inversión inicial. Para solucionar un saldo negativo, sigue estos pasos para solicitar un ajuste:
Selecciona “Reiniciar” a la derecha de la lista de cuentas MT4/5. Nota: Reiniciar eliminará bonificaciones de crédito y no está disponible para cuentas PAMM/MAM.
¿Cuál es la diferencia entre equity y balance?
El equity refleja el saldo acumulado de la cuenta, incluidas ganancias o pérdidas no realizadas y cualquier crédito o bonificación. Es posible que tu equity sea positivo incluso con un saldo negativo, especialmente si hay bonificaciones aplicadas.
Para más preguntas o detalles sobre nuestras condiciones de trading, visita la sección completa de preguntas frecuentes en nuestro sitio web o contacta a nuestro equipo de soporte. También puedes visitar nuestro HelpCentre para obtener más FAQs.
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Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of all share CFDs on Oct 14, 2024:
1. All US Shares products leverage will be adjusted to 20:1.
2. MT5 All Shares products: New positions opened within 30 minutes before market closing and after market opening will start with a leverage of 5:1. After the mentioned period, the leverage will be resumed to original leverage and will not be adjusted back to 5:1.
MT4 will not be affected.
The above data is for reference only; please refer to the MT4 and MT5 software for specific data.
Friendly reminders:
1. All specifications for Shares CFD stay the same except leverage during the mentioned period.
2. The margin requirement of the trade may be affected by this adjustment. Please make sure the funds in your account are sufficient to hold the position before this adjustment.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
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