Rise in world's poor, courtesy of Covid-19
October 8, 2020 - For more than two decades extreme poverty has been declining, but now the economic fallout of Covid-19 will create millions of new poor, according to the "Poverty and Shared Prosperity 2020" report by the World Bank.
Poverty reduction has suffered its worst setback in decades, after nearly a quarter of a century of steadily declining global extreme poverty (measured as those who have to survive on $1.90 per day).
The "Poverty and Shared Prosperity 2020" report by the World Bank provides new data on the cause of the reversal – identifying Covid-19 and associated economic crisis, compounded by effects of armed conflicts and climate change, as the main culprits.
The report shows that pandemic-related job losses and deprivation worldwide are hitting already-poor and vulnerable people hard, while also partly changing the profile of global poverty by creating millions of "new poor".
New poor are more urban, better educated, and less likely to work in agriculture than those living in extreme poverty before COVID-19.
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