This archive report was first published on 20 May 2020.
On May 20, 2020, the World Bank warned that the coronavirus pandemic could push up to 60 million people into extreme poverty, erasing three years of progress in poverty alleviation.
According to World Bank President David Malpass, the bank expects global economic growth to shrink by 5% this year, with poorer countries feeling the brunt of the pandemic.
“Millions of livelihoods have been destroyed and healthcare systems are under strain worldwide,” Mr. Malpass said, adding that the bank's estimate of 60 million people being pushed into extreme poverty is a stark reminder of the crisis.
The World Bank defines extreme poverty as living on less than $1.90 per person per day, and is offering $160 billion in grants and low-interest loans to help poor countries tackle the crisis.
Mr. Malpass expressed frustration with commercial lenders for dragging their heels on offering debt relief to poor nations, saying that the slow pace of debt relief is a major concern.
Meanwhile, Jamie Dimon, chief executive of JP Morgan bank, called for a fairer society, saying that the pandemic must serve as a “wake-up call” to rebuild an economy that creates opportunities for more people.
