Corona epidemic will push 150 million people into poverty: World Bank

New York, Ta. Wednesday, October 7, 2020

The two watchdogs of the world economy, the World Bank and the World Trade Organization (WTO), have indicated that the early days of recovery from the recession caused by the Corona epidemic may be better than expected in some countries and industries, but it will take a long time for the world economy to fully recover.

The WTO said trade would decline by 9.2 per cent this year compared to 2019. It is lower than the 12.9 per cent projected in April, but is projected to grow by only 7.2 per cent in 2021, up from an earlier estimate of 21.3 per cent.

The World Bank has said that by 2021, the Corona epidemic will push 150 million people into abject poverty. Countries need to be prepared for a different kind of economy after the Corona epidemic. In which labor, capital, skills and innovation have to be allowed to enter new businesses and fields.

The Corona epidemic will push 88 million out of 115 million people into extreme poverty this year alone. By 2021 this figure will increase to 150 million. Which is based on the contraction of economic activities. If the Koro epidemic had not spread around the world, the poverty rate would have dropped to 7.9 percent in 2020. The World Bank Group President David Malpas said that 1.4 per cent of the world's population would experience extreme poverty due to the epidemic and the global recession.

The World Bank, in its report, noted that the lack of data from India has created uncertainty in estimating global crop yields. India has a very poor population. The spread of the corona virus in Germany has led to an unexpected decline in its industrial production.

Industrial production fell 0.2 per cent in August. Weaknesses have been observed mainly in the auto manufacturing sector. In the US, President Donald Trump has blocked talks with Democratic leaders for a new stimulus package. Democrats proposed a 2. 2.2 trillion package, but Republicans agreed to a માત્ર 1.6 trillion package.