World Bank warns coronavirus pandemic risks drastic rise in poverty

WASHINGTON: The World Bank has warned that the coronavirus pandemic has resulted in the most widespread global economic crisis since 1870 which could lead to a dramatic rise in poverty levels around the globe.
The organization has warned that as many as 90 percent of the 183 economies are expected to suffer from falling levels of Gross Domestic Product (GDP) in 2020 due to COVID-19.
As per its Global Economic Prospects (GEP) report, incomes are expected to reduce by 3.6 percent around the world that can result in extreme poverty. According to the World Bank, the highest share of countries in 150 years would enter recessions at the same time.
The World Bank added that the recession would hit poorer nations more, which are already suffering from economic downfall already.
On the other hand, economic activity among developed countries is expected to shrink 7 percent this year as domestic demand and supply, trade, and finance are severely disrupted by the spread of the disease and lockdown measures used to curb the virus.
Earlier last month, the organization warned that the coronavirus pandemic that has claimed more than 403,000 lives across the world, would leave around 60 million people into extreme poverty this year.

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