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Over 34 million people to fall below poverty due to Covid-19, - UN

Source : 112 Ukraine

The world will miss about $8.5 trillion of income during the next two years due to the Covid-19 pandemic
16:27, 14 May 2020

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The United National predicts that coronavirus pandemic will reduce the global economy by 3.2% in 2020. Over 34 million people will fall below the poverty line as the UN reported.

Besides, it is expected that the world will miss about $8.5 trillion of income during the next two years due to the Covid-19 pandemic. However, the UN is sure that the serious consequences of this recession might be overcome, taking international cooperation at the new level.

Related: Ukraine’s economy to reduce by 5% due to pandemic, global crisis

According to the report of the state and prospects of the world economy, the developed country will face negative economic growth – their GDP will reduce by 5%. These losses will be partially compensated only in 2021 when the economy reaches the moderate growth – at the level of 3.4%. For developing countries, the reduction of the economy in 2020 is predicted at 0.7% level. The world trade in 2020 will reduce by 15%. The sharp reduction of the world demand and disruptions in the global chains of supplies are the reason for it.

The pandemic, probably, will lead to the fact that over 34 million people will fall below the poverty line; half of the growth of this rate will be observed in the African countries. The long-term prediction shows that until 2030, the number of people who live in extreme poverty will grow by 130 million. The pandemic seriously hit people, who worked at low-paid jobs, which do not demand special skills, while more qualified workers suffered less. According to the UN, the income gap between poor and rich will increase, both people and countries.

Related: Coronacrisis won't ruin EU, but would significantly change it

The obligatory condition for the recovery of the world business activity after the pandemic is the strengthening of international cooperation. It is especially important for the deterrence of pandemic and provision of financial aid to the countries, which suffered from the crisis more.

As we reported, the European Commission published the plan on opening borders and tourism in the EU countries. According to the Commission, airlines and airports should insist on wearing masks by the passengers.

 

 

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