The World Bank, has on Tuesday, warned that global economic growth could rebound in 2021, but the number of people living in extreme poverty is expected to remain unchanged, after a huge surge this year, due to the coronavirus pandemic.
The World Bank said three countries, India – 24%, Nigeria – 12%, and DR Congo – 7%, with the highest shares of the world’s extremely poor, are not projected to grow faster than their population, meaning that extreme poverty will remain at the elevated 2020 levels through 2021.
The projection came after the Washington-based development lender said on Monday, that the pandemic could drive between 70 and 100 million people into extreme poverty in 2020, as the global economy faces its worst recession in 80 years.
Source: World bank
Before the pandemic, extreme poverty, defined as living on $1.90 per day, had been decreasing.
The World Bank expects growth to rebound by 4 percent in 2021.
“Nigeria, India, and the Democratic Republic of Congo, 3 countries which we project are home to more than a third of the world’s poor, are predicted to have per-capita growth rates in real GDP of –0.8 percent, 2.1 percent, and 0.3 percent, respectively.
“With population growth rates of 2.6 percent, 1.0 percent, and 3.1 percent, this is hardly enough for sustainable decreases in the poverty headcount”, the World Bank said in a blog.
The World Bank further warned that “South Asia may see a larger increase in the number of poor, as a result of Covid-19”, particularly in India.
Of the 176 million people expected to be pushed below the $3.20 per day poverty line, two thirds are in South Asia.