Washington-based World Bank says pandemic could push up to 150mn into extreme poverty

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Washington-based World Bank says pandemic could push up to 150mn into extreme poverty

On Wednesday, World Bank, the Washington DC-based world’s largest lender that proffers debts and grants to the Governments of low and emerging economies, had forecasted that up to 150 million people across the globe could join the group of extreme poor by late-2021 as a pandemic-era global economy would likely to pummel their earnings less than $1.90 a day, pointing towards a perilous economic landscape that has been grimmer than the World Bank's previous forecast made during the onset of the pandemic outbreak.

More importantly, the Washington-based world’s largest international financial entity had also added at its report that the middle-income alongside emerging economies including India, Indonesia and Nigeria became more susceptible to harbouring about 82 per cent of the new group of extreme poor.

South Asia and Sub-Saharan Africa to bear the heaviest brunt

Fanning the flames further, the World Bank report had also said that a majority of the extreme poor would likely to be more-educated urban residents, suggesting the city dwellers would witness an intransigent increase in poverty than rural areas amidst an increase in layoffs.

Besides, Wednesday’s World Bank report had warned that over 110 million of the new extreme poor would belong to South Asia and Sub-Saharan Africa, while analysts suggested an unprecedented homecoming of tens of millions of citizens working abroad amid a mass-scale downturn in global economy could worsen the situation further.

Meanwhile, speaking in a teleconference followed by the reveal of World Bank’s latest estimate, the World Bank President, David Malpass, a former associate of Trump Administration, had been quoted saying that the pandemic had halted years of progresses against a global-scale extreme poverty, while the number of extreme poor across the globe was expected to rise this year for the first time in more than two decades.

Besides, adding that the global economic growth was expected to suffer a whiplash of an eight-decade-low of 5.2 per cent this year, Malpass warned that the global financial inequality would likely to worsen for years due to the pandemic’s fiscal fallouts.

More than 25 per cent of the world’s entire population, who used to make their ends meet below $3.20 a day, remain vulnerable to a number of economic shocks over the coming years and the pandemic’s fiscal effects would be pushing them towards extreme poverty, the World Bank said.