The worst global economic crisis since World War II might push up to 100 million people into poverty, warns the World Bank. The international financial institution estimates that global GDP could fall by up to 5 percent in 2020, sending 100 million people into further poverty.
Ayhan Kose, director of The World Bank’s Prospects group, foresees mass poverty ahead. “This year we will see the highest share of economies experiencing declines in their per capita income,” he said. “Of course this means poverty outcomes are going to get worse and we are projecting anywhere between 70 and 100 million people basically becoming poor, joining the ranks of poor.”
Countries must now focus on not only controlling the pandemic, but, also, “aggressive fiscal measures.”
Kose continued: “Policy makers need to address the immediate out crisis, allocate resources, aggressively undertake measures so they can contain the pandemic. The second thing they will need to do of course will require aggressive fiscal measures stimulating these economies and aggressive monetary policy measures.”