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World Bank: COVID-19 to push 150 million people into extreme poverty by 2021

08 October 2020 09:58

WASHINGTON, D.C. - Extreme poverty is projected to rise globally in 2020 for the first time in over 20 years due to the coronavirus (COVID-19) pandemic, the World Bank said.

According to the World Bank’s biennial Poverty and Shared Prosperity Report, an additional 88 million to 115 million people will slip into extreme poverty in 2020, with the number rising to as many as 150 million people by 2021. Extreme poverty, the report says, is likely to affect 9.1%-9.4% of the global population this year; had the pandemic not occurred, the global poverty rate would have dropped to 7.9%.

“In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labour, skills, and innovation to move into new businesses and sectors,” said World Bank Group President David Malpass in an official statement received by IDNFinancials.com, Wednesday (7/10).

“World Bank Group support—across IBRD (International Bank for Reconstruction and Development), IDA (International Development Association), IFC (International Finance Corporation), and MIGA (Multilateral Investment Guarantee Agency)—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.”

In particular, the report also finds that many of the new poor will be in countries with already high poverty rates, with 82% of the total being in middle-income countries. (MS)

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