Poverty increases in East Asia for the first time in 20 years due to Kovid: World Bank


People gather in a slum in Jakarta, Indonesia amid the Kovid-19 epidemic.

Aditya Irawan | Nurphoto | Getty Images

SINGAPORE – The number of people living in poverty in developing countries of the East Asian and Pacific countries may rise for the first time in 20 years, as the coronovirus epidemic drastically erased this year’s economic growth, which was reached on Monday by the World Bank As shown in the forecast.

The bank defined the poverty line as $ 5.50 per day of income. It said that 38 million more people could fall below that income level this year, including 33 million who would have survived poverty if not for the Kovid-19 shock.

That World Bank forecast was published in an economic update for the region, which includes China, Southeast Asian countries and Pacific islands such as Fiji and Samoa. India and other South Asian countries are not included in the report.

Sickness, food insecurity, job loss and school closures can cause health and learning losses that can last a lifetime.

The report states in an expanded body of research how the epidemic is hurting the poor. In July, the United Nations estimated that 8.8% of the world’s population would remain in extreme poverty this year, an increase of 8.2% in 2019. Extreme poverty is defined as income below $ 1.90 per day.

The World Bank said that the “scar” could remain for many years due to the Kovid-19 crisis.

“Sickness, food insecurity, job loss, and school closures can lead to loss of health and learning that can last a lifetime. Poor hospitals, due to poor access to schools, jobs and finances, will become completely unemployed, “It states. Report good.

But more adoption of technology as a result of the epidemic can help the poor have better access opportunities and public services, the bank said.

“To generate these benefits, these techniques must be broadly available.”

Weak economic growth since 1967

According to the World Bank, poverty forecasting for developing countries in East Asia and the Pacific region is expected to grow at just 0.9% this year – the weakest growth rate since 1967 in the region.

“COVID-19 has dealt a major blow to the developing East Asia and Pacific Region (EAP) region: the self-epidemic, the economic impact of prevention measures, and the rebirth from the global recession brought on by the crisis.”

China, the world’s second-largest economy, is expecting 2% growth this year – one of only three countries in the group expected to register growth this year, the bank said.

The report noted that economic growth in the region is projected to grow to 7.4% next year, with China forecasting the largest expansion of 7.9%.

The World Bank said, “The prospects for the region are brighter in 2021.” “However, production is projected to remain below pre-epidemic estimates for the next two years.”

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