World economic growth would be revived next year but the number of people living in extreme poverty is anticipated to remain the same after a huge rise this year due to the covid19 pandemic, the world announced on Tuesday.
The World Bank stated that three countries which include India at 24%, Nigeria at 12% and DR Congo at 7% with the highest portion of the worlds extremely impoverished are expected not to grow faster than their population, which means that extreme poverty is expected to remain high throughout 2020 to 2021.
The projection was made after the Washington based development borrower said on Monday that the virus could make 70 to 100 million people live in extreme poverty in 2020 as the world economy faces its worst recession in over 80 years.
Before Covid19, extreme poverty was seen as living on 1.90 dollars a day had been reducing.
The bank’s projected growth is expected to rebound by 4% in 2021.
So India, Nigeria, and DR Congo, the three countries which are seen to have a third of the world’s poor are predicted to have a per capita growth rate in real GDP of 2.1%, 0.8%, and 0.3% respectively.
The world bank in a blog explained that with a population growth rate of 1.0%, 2.6%, and 3.1%, this is seen not to be enough to consistently reduce the rate of poverty.
The bank predicted that South Asia may witness a larger increase in the number of poor people because of covid19, especially in India.
It stated that 176 million are predicted to be living below 3.20 dollars per day.