Research by charity group Oxfam, in collaboration with King’s College London and the Australian National University analyzed the after effects of coronavirus on global monetary poverty and concluded that the pandemic could push an extra half a billion people into poverty.
That is around 8% of the world’s population that may reach the World Bank poverty lines of people earning below $5.50 per day.
According to the research, poverty levels would increase with a great margin for the first time since 1990. It is also anticipated that the impact would be greater in hard-hit areas such as North Africa, Sub-Saharan Africa, and the Middle East.
The most affected scenario would be a 20% fall in income. This would add an extra 548 million people who are earning less than $5.50 per day. The United Nations also warns that around $2.5 trillion would be required to support the countries that are impacted the worst due to COVID-19. The UN also predicts that nearly half of all Africa’s jobs could be lost as a result of the recession.
A meeting to discuss the debt relief of poor countries is to be held in the coming week. The meeting would be attended by G20 ministers, The World Bank, and the IMF. Charity group Oxfam urges the global community to announce a rescue package to aid every country that would be facing a shortfall after the pandemic is over.
It is expected that the IMF would announce an immediate cancellation of $1 trillion in debt and issue a further $1 trillion in Special Drawings Right for the struggling countries.
In the following Infographic, let’s take a look at the number of people who would reach the poverty line, after the 20% loss in income.
Infographic by: www.statista.com