150 million to be in extreme poverty by 2021: World Bank

07 Oct 2020 05:41 PM

Coronavirus pandemic has really hit hard. Covid-19 is now not only certain about the deaths or serious illness. It's now more about the dropping economy and job loss due to the pandemic.



Now, the World Bank has predicted that as many as 150 million people are likely to be in extreme poverty because of the coronavirus pandemic. Middle-income countries like India will see a significant number of people fall below extreme poverty rate.

India has suffered worst due to coronavirus pandemic. Its second worst hit coronvirus nation and also one of the worst hit economic nation.


Indian economy was already derailed due to demonetization and improper implementation of GST.


Now, the coronavirus pandemic has left Indian economy to crumble further. Many job losses were witnessed due to covid-19 lockdown and many people were left with no income.


The World Bank said countries will have to prepare for a different economy post-COVID by allowing capital, labour, skills and innovation to move into new businesses and sectors.


Pandemic would push an additional 88 million to 115 million people into extreme poverty this year.

The total would rise to as many as 150 million by 2021.

It would depend on the severity of the economic contraction.


It would represent a regression to the rate of 9.2 per cent in 2017.

If the pandemic did not exist, the poverty rate would have been expected to drop to 7.9 per cent in 2020.

Pandemic & global recession may cause over 1.4 per cent of the world’s population to fall into extreme poverty.


Countries need to prepare for a different economy post-COVID.

It should allow capital, labour, skills & innovation to move into new businesses & sectors, to avoid this serious setback.


New poor will be in countries that already have high poverty rates.

Middle-income countries will see significant numbers of people slip below the extreme poverty line.About 82 per cent of the total will be in middle-income countries.


Desk: Sameep Narvekar



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