Covid-19 crisis is 'devastating blow' for world economy, - World Bank

Source : 112 Ukraine

The World Bank, along with its counterparts, has been providing support to the worst affected countries, but says much more is needed
17:11, 7 June 2020

World Bank President David Malpass

The coronavirus pandemic is a "devastating blow" for the world economy, according to World Bank President David Malpass. This is reported by the BBC.

He warned that billions of people would have their livelihoods affected by the pandemic. The economic fallout could last for a decade.

In May, Malpass warned that 60 million people could be pushed into "extreme poverty" by the effects of coronavirus. The World Bank defines "extreme poverty" as living on less than $1.90 (£1.55) per person per day.

However, in an interview on Friday Malpass said that more than 60 million people could find themselves with less than £1 per day to live on.

Malpass warned it's been those who can least afford it who've suffered the most.

Related: Coronavirus mapping dashboard: world online

"We can see that with the stock market in the US being relatively high, and yet people in the poor countries being not only unemployed but unable to get any work even in the informal sector. And that's going to have consequences for a decade."

The World Bank, along with its counterparts, has been providing support to the worst affected countries but says much more is needed.

It is calling on commercial lenders such as banks and pension funds to offer debt relief to poor countries.

He would also like them to make the terms of their loans clearer, so other investors are more confident about putting money into those economies.

Targeted government support and measures to shore up the private sector are also vital to rebuild economies, the World Bank argues.

Investment and support would create jobs in areas like manufacturing, to replace those in the worst affected sectors, such as tourism, which may have been permanently lost.

Related: Ukraine has not yet won war with Covid-19, - Healthcare Minister

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