90 Million People in the World Will Enter Extreme Poverty Level
Throughout 2020, the global economy shrank by 3.5 percent. This number is the worst since World War II. The prediction was published by the International Monetary Fund (IMF) on Tuesday (26/1).
According to the latest report, the world economy will grow by 5.5 percent this year. Just last October, the IMF estimated that economic growth would be around 5.2 percent. If proven, the second year of the pandemic will record the largest global growth since 2010.
https://cobbk12.instructure.com/eportfolios/903
https://cobbk12.instructure.com/eportfolios/904
https://cobbk12.instructure.com/eportfolios/906
https://cobbk12.instructure.com/eportfolios/907
This projection depends on the success of countries in the world in implementing mass immunization to stop the corona outbreak. Easing protocols and normalizing economic activities are predicted to color recovery efforts around the world.
But the world body has also warned the government to help small businesses deal with the damage caused by the pandemic.
In the 2021 World Economic Outlook report, the IMF predicts the US economy will grow 5.1% this year, after falling 3.4% in 2020. Meanwhile, China, which last year still grew 3.4%, this year will record a growth of 8.3%. %.
The threat of extreme poverty for the marginalized
It is believed that the 19 EU countries will post an average growth of 4.2 percent. Last year, the 27 EU countries lost 7.2% of their GDP as a result of the pandemic. The IMF predicts Japan’s economy will grow by as much as 3.1 percent, after shrinking 5.1 percent in 2020.
https://mi.instructure.com/eportfolios/29530
https://mi.instructure.com/eportfolios/29536
https://mi.instructure.com/eportfolios/29544
https://mi.instructure.com/eportfolios/29549
Among the highest predictions are given to India. Thanks to a flash recovery in the manufacturing and agricultural sectors, the South Asian country is predicted to grow by 11.5% in 2021. For Indonesia, the IMF corrected its prediction of 5.4% in June 2020, to 5.2% this year.
“With a figure of USD 22 trillion, the value of cumulative losses from 2020 to 2025 relative to pre-pandemic levels is still very large,” said IMF Director Gita Gopinath, Tuesday (26/1).
In a blog on the IMF website, Gopinath wrote that developed countries were able to recover quickly because they could provide broad assistance for businesses, and access to vaccines. On the other hand, in developing countries, there are concerns about the achievements that have been recorded so far.
“Nearly 90 million people worldwide will enter extreme poverty levels by 2021, reversing the trend over the past two decades,” he wrote, adding that the informal, poorly educated, or female workforce were among the most vulnerable.
In his opinion, the international community must ensure that “the pandemic is contained worldwide,” and take advantage of the recovery momentum to build “a more prosperous, green and inclusive future.”
