Economic Forecast: Covid-19 pandemic could push 40-60 million into extreme poverty

12th May 2020 (Last Updated May 12th, 2020 12:43)

12 May

The World Bank predicts an increase in poverty globally for the first time since 1998 due to the current pandemic. They said that the pandemic is pushing about 40-60 million people into extreme poverty, with their best estimate being 49 million.

The modelling also predicts that the share of the world’s population living on less than $1.90 per day—is projected to increase from 8.2% in 2019 to 8.6% in 2020, or from 632 million people to 665 million people.

McKinsey estimates that in the weeks from 6 April to 19 May around 22 percent of the United Kingdom’s working-age population, or nine million people, had been furloughed.

At that same time less than 1 percent of businesses reported ceasing to trade permanently or having laid off people.

McKinsey states: “The knock-on consequences of the lockdown are anticipated to result in significant job losses down the road. Businesses’ ability to continue to employ and pay workers might be particularly precarious when government support starts to be withdrawn.”