World Bank: Pandemic to push over 115 million people into extreme poverty

A man's silhouette is silhouetted against the World Bank logo at the headquarters of the annual meeting of the International Monetary Fund (IMF) and the World Bank in Tokyo.  REUTERS-Kim Kyung-Hoon

A World Bank report has noted that over the past 12 months, the Covid-19 pandemic has harmed the poor and vulnerable the most, threatening to push millions more into poverty.

This year, the World Bank said, after decades of steady progress in reducing the number of people living on less than $ 1.90 a day, COVID-19 will usher in the first reversal in the fight against extreme poverty. in a generation.

The report said the latest analysis warns that COVID-19 has pushed 88 million more people into extreme poverty this year, and that number is just a baseline.

“In the worst case, the figure could reach 115 million. The World Bank Group forecasts that most of the ‘new poor’ will be in South Asia, closely followed by sub-Saharan Africa. dd According to the latest Shared Poverty and Prosperity report, ‘many of the new poor are likely to be engaged in informal services, construction and manufacturing, the sectors in which economic activity is most affected by lockdowns and other mobility restrictions, ‘”the Bretton Woods Institution said.

Those restrictions, enacted to control the spread of the virus and thus ease pressure on vulnerable and strained healthcare systems, have had a huge impact on economic growth.

The June issue of Global Economic Prospects put it clearly: “COVID-19 has triggered a global crisis like no other: a global health crisis that, in addition to enormous human cost, is leading to the deepest global recession since Second World War.”

He predicted that the world economy and per capita income would shrink this year, pushing millions into extreme poverty.

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