World Bank: 11 million to enter poverty in Pacific and East Asia

On March 31, 2020, the World Bank announced that around 11 million are to enter poverty in Pacific and East Asia due to the spread of COVID-19. The virus has affected more than 780,000 and has so far killed more than 37,000.

Highlights

According to the World Bank, around 35 million people in Pacific and Asia will escape poverty. This includes 25 million in China alone. The bank has projected the growth in the region to be slow and around 2.1%. In 2019, the bank had estimated the growth of the region as 5.8%.

The bank has projected growth rate of China as 2.3%. Earlier, in 2019, it had predicted China’s growth rate as 6.1%.

Suggestions

The bank recommends more investments in the health sector. It suggests for macroeconomic policies and integrated containment of the virus. The World Bank also recommends targeted fiscal measures such as health care and subsidies for sick pay. This will make sure the temporary deprivation is not converted into long term human capital losses.

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