Global extreme poverty is expected to rise for the first time in 20 years because of the disruption caused by COVID-19, exacerbating the impact of conflict and climate change, which were already slowing down poverty reduction, according to the World Bank’s ‘Poverty and Shared Prosperity Report’.
Findings of the report
- The pandemic may push another 88 million to 115 million into extreme poverty or having to live on less than $1.50 per day, resulting in a total of 150 million such individuals.
- Some 9.1% to 9.4% of the world will be affected by extreme poverty in 2020, compared to 7.9% in the counterfactual scenario where the pandemic had not raged across the world.
- Many of the newly poor individuals will be from countries that already have high poverty rates while many in middle income countries (MICs) will slip below the poverty line, as per the report. Some 82% of the total will be in MICs.
- Sub-Saharan Africa, with 27-40 million new poor, and South Asia, with 49-57 million new poor, will be badly hit as per the Bank’s projections.
- The pandemic and global recession may cause over 1.4% of the world’s population to fall into extreme poverty.