Up to 150 million could join extreme poor, World Bank says

Shafaq news/ The World Bank says up to 150 million people could slip into extreme poverty, living on less than $1.90 a day, by late next year depending on how badly economies shrink during the COVID-19 pandemic.

Middle income-countries are expected to have 82% of the new extreme poor, including India, Nigeria and Indonesia. Many of the new extreme poor will be more educated urban residents, meaning cities will see an increase in the kind of poverty traditionally rooted in rural areas.

The pandemic has abruptly halted years of progress against global extreme poverty, expected to rise this year for the first time in over two decades. It also threatens to worsen global inequality and make it “harder for countries to return to inclusive growth,” World Bank president David Malpass said.

Almost a quarter of the world’s population lives below $3.20 a day, a massive number of people vulnerable to the kind of economic shocks that this year have come in waves. Unemployment is rising, and those who scraped together savings have watched them disappear. Families are eating less.

The addition of up to 150 million extremely poor people threatens to rupture governments’ already fraying safety nets. The World Bank estimates between 88 million and 115 million people could slip into extreme poverty this year, with another 23 million to 35 million in 2021.