Covid-19 could push 11 million Asians into poverty

The information was given in a report published by the World Bank (WB) on March 31, which warned that Asia-Pacific could face the worst economic downturn in more than 20 years.

The World Bank forecasts that economic growth across the region may drop to 2.1% in 2020, compared to 5.8% in 2019. However, this is not the worst situation according to this organization.

China, where Covid-19 originated, could see a growth rate of only 2.3% in 2020. In the worst case, the country’s economy will almost stagnate with growth of 0.1% compared to 2020.

Hong Kong elderly people received free food on March 27.

This will have a negative impact on the world economy.

`Trade losses are inevitable in every country. The entire Asia-Pacific should prepare for serious impacts on social security, including the risk of loss of income, poverty, disease

The above statistics are only forecasts and are subject to change, but still show the risk of economic damage and require urgent response.

The World Bank pledged to support 14 billion USD for developing countries, as well as disburse 160 billion USD within 15 months to protect the poor and vulnerable.

Fears of an economic recession have spread in recent weeks as Covid-19 appeared across Asia, forcing many governments to impose blockades, restrict travel, and close all businesses and homes.

Street shops closed in Bangkok, Thailand on March 30.

The crisis in Asia-Pacific is especially dangerous because this region has experienced many months of negative impacts from the US-China trade war.

Indonesia, Papua New Guinea and the Philippines will be most affected, while Vietnam, Cambodia, Laos, Mongolia and Myanmar are expected to maintain growth even though it is lower than the same period last year.

Countries will witness a significant decrease in revenue from tourism, especially in countries where the tourism industry accounts for over 10% of GDP such as Malaysia and Thailand.

Millions of people could fall into poverty with incomes of less than 5.5 USD/day in countries with weak or developing economies.

These forecasts are almost in direct contrast to the World Bank’s pre-pandemic forecast, which estimated that 35 million people would escape poverty in Asia-Pacific in 2020, including more than 25 million people in China alone.

The world has recorded more than 870,000 nCoV infections and more than 43,000 deaths in 202 countries and territories.

In Southeast Asia, Malaysia is the largest epidemic area with 2,766 cases and 43 deaths.