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The COVID-19 crisis has also diminished shared prosperity – defined as the growth in the income of the poorest 40 percent of a country’s population. While less than a tenth of the world’s population lives on less than $1.90 a day, close to a quarter of the world’s population lives below the $3.20 line and more than 40% of the world’s population – almost 3.3 billion people – live below the $5.50 line. The report further measures poverty across a multidimensional spectrum that includes access to education and basic infrastructure. In addition to the $1.90-per-day international poverty line, the World Bank measures poverty lines of $3.20 and $5.50, reflecting national poverty lines in lower-middle-income and upper-middle-income countries. Global poverty had dropped at the rate of around 1 percentage point per year between 19. Yet despite this progress, the rate of reduction slowed to less than half a percentage point per year between 20. New global poverty data for 2017 show that 52 million people rose out of poverty between 20. Progress was slowing even before the COVID-19 crisis.
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Increasing numbers of urban dwellers are expected to fall into extreme poverty, which has traditionally affected people in rural areas. By 2030, the global poverty rate could be about 7%. The convergence of the COVID-19 pandemic with the pressures of conflict and climate change will put the goal of ending poverty by 2030 beyond reach without swift, significant and substantial policy action, the World Bank said. About 82% of the total will be in middle-income countries, the report estimates. A number of middle-income countries will see significant numbers of people slip below the extreme poverty line. The report also finds that many of the new poor will be in countries that already have high poverty rates. World Bank Group support-across IBRD, IDA, IFC and MIGA-will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery.” “In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors.
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“The pandemic and global recession may cause over 1.4% of the world’s population to fall into extreme poverty,” said World Bank Group President David Malpass. Had the pandemic not convulsed the globe, the poverty rate was expected to drop to 7.9% in 2020. This would represent a regression to the rate of 9.2% in 2017. Extreme poverty, defined as living on less than $1.90 a day, is likely to affect between 9.1% and 9.4% of the world’s population in 2020, according to the biennial Poverty and Shared Prosperity Report. The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction. 7, 2020 - Global extreme poverty is expected to rise in 2020 for the first time in over 20 years as the disruption of the COVID-19 pandemic compounds the forces of conflict and climate change, which were already slowing poverty reduction progress, the World Bank said today. Eight out of 10 ‘new poor’ will be in middle-income countries