More than 150 million people may fall into extreme poverty throughout the world by 2021 as a result of the economic contraction caused by the novel coronavirus pandemic, the World Bank said in a report on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 07th October, 2020) More than 150 million people may fall into extreme poverty throughout the world by 2021 as a result of the economic contraction caused by the novel coronavirus pandemic, the World Bank said in a report on Wednesday.
"The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction," the report said.
The World Bank pointed out in the report that about 82 percent of the so-called "new poor" will be in the middle-income countries that already have high poverty rates.
Extreme poverty is defined as living on less than $1.9 per day and it may affect about 9.1 percent to 9.4 percent of the population.
The World Bank noted that absent the pandemic, the extreme poverty rate was expected to be less than 8 percent.
"The pandemic and global recession may cause over 1.4 percent of the world's population to fall into extreme poverty," World Bank President David Malpass said.
Malpass urged countries to prepare for a different post-COVID-19 economy by allowing capital, labor, skills and innovation to move to new businesses and sectors.
"World Bank Group support... 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," Malpass said.
The World Bank called on countries to cooperate with each other to ensure the results of the continuing efforts to reduce poverty levels.
