60 million people could go into ‘extreme poverty’ due to coronavirus, World Bank says

As many as 60 million people could fall into “extreme poverty” as a result of economic damage done by the coronavirus, The World Bank Group said Tuesday,

This would undo years of effort made toward eliminating poverty, David Malpass, president of the global financial institution, said in a statement.

World Bank defines extreme poverty as those living on $1.90 or less per day.

The group previously estimated 49 million were at risk of sliding into the “extreme” status in an April report.

“Such forecasts reveal that COVID-19 is likely to cause the first increase in global poverty since 1998,” it said.

Malpass said in a media call that the group is forecasting a “deep recession this year” for the global economy.

“Families have lost loved ones, millions of jobs and livelihoods are lost, the health systems are under enormous strain worldwide,” he added.

To rescue the global economy, Malpass says funds must be invested in several key areas.

“To return to growth, our goal must be rapid, flexible responses to tackle the health emergency, provide cash and other expandable support to protect the poor, maintain the private sector, and strengthen economic resilience and recovery.”

The organization is pledging to provide $160 billion in COVID-19 relief in the form of grants and other economic support over a 15-month period to the most vulnerable nations.

“The health and economic impacts that the Covid-19 pandemic and shut down have inflicted on developing countries are severe,” Malpass said on the call.

Funds have been distributed to 100 nations so far, comprising 70% of the world’s population, according to the statement, with 39 of the 100 in sub-Saharan Africa.

Still, the group said its efforts alone won’t be enough, and it is calling on other entities to donate, be they individuals, organizations or governments.