Pandemic to push millions into poverty, World Bank warns

Addis Ababa, September 29, 2020 (FBC) -The US-based World Bank has warned that the coronavirus pandemic could keep or push up to 38 million people in East Asia into poverty.

Without rapid government action the “triple shock” of the virus, lockdown measures and the global recession could cause harm for years to come.

“Sickness, food insecurity, job losses and school closures could lead to the erosion of human capital and earning losses that last a lifetime,” the bank said in a release.

Of those 38 million, the bank said an additional five million who were not previously in poverty would fall into the bracket. They define poverty as anyone living on less than $5.50 a day.

In May, the World Bank warned that global growth could shrink by 5% and that up to 60 million people worldwide could be pushed into extreme poverty – meaning living on less than $1.90 a day.