Thursday, October 22, 2020
Home News COVID-19 pushed 115 million people into extreme poverty – World Bank

COVID-19 pushed 115 million people into extreme poverty – World Bank

For the first time in over two decades, global extreme poverty is expected to rise in 2020 due to COVID-19.

The World Bank, in a statement on Wednesday, said the pandemic compounds conflict and climate change, which were already slowing poverty reduction progress.

The bank estimated that an additional 88 million to 115 million people will be pushed into extreme poverty in 2020.

The estimation may rise to 150 million by 2021, depending on the severity of the economic contraction.

The biennial Poverty and Shared Prosperity Report noted that extreme poverty (living on less than $1.90 a day), is likely to affect between 9.1% and 9.4% of the world’s population this year.

This would represent a regression to the rate of 9.2% in 2017.

Before the pandemic, poverty rate was expected to drop to 7.9% in 2020.

World Bank Group President David Malpass predicted that coronavirus and global recession may cause over 1.4% of the world’s population to fall into extreme poverty.

Malpass said to reverse the setback to development progress and poverty reduction, countries must prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors.

“World Bank Group support – across IBRD, IDA, IFC and MIGA – will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery”, he assured.

The report added that many of the new poor will be in countries that already have high poverty rates.

It estimated that a number of middle-income countries will see significant numbers of people (about 82%) slip below the extreme poverty line.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US:

6,985FansLike
1,458FollowersFollow
553SubscribersSubscribe

Most Popular

IGP ordered withdraws policemen attached to VIPs

The Inspector-General of Police, Mohammed Adamu, has ordered the withdrawal of all police officers attached to all VIPs across the nation with...

Curfew: Flight Operations at MM Airport Lagos suspended

Flight operations at the Murtala Mohammed Airport in Lagos have been suspended following the 24-hour curfew imposed in the state by Babajide...

#EndSARS: Senate asks Buhari to address Nigerians

The Senate on Tuesday asked the President, Major General Muhammadu Buhari (retd.), to address the nation immediately on the current nationwide protests...

I won’t endorse 2021 budget if there’s no compansation provision for #EndSARS victims – Speaker

The Speaker of the House of Representatives, Femi Gbajabiamila, has disclosed that he will not sign the 2021 budget if provision for...