The global pandemic is set to cause a disturbing slide to extreme poverty and inequality, leading over 90 million people across the world fall below 1.90 dollars daily income, the International Monetary Fund (IMF) warned.
The IMF released its flagship annual report, the World Economic Outlook, where it sees growth recovery from COVID-19 impact as “long and difficult ascent”. The pandemic has compelled the IMF to hold its biannual meeting of central bank governors and finance ministers virtually, which begins this week. The IMF sees growth in global economy to shrink to negative 4.4pc in 2020, although its economists are upbeat in recovery for next year at 5.2pc.
“The persistent output losses imply a major setback to living standards relative to what was expected before the pandemic,” the IMF said in its outlook. “Not only will the incidence of extreme poverty rise for the first time in over two decades, but inequality is set to increase because the crisis has disproportionately affected women, the informally employed, and those with relatively lower educational attainment.”