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Poverty to increase by 11 mn in East Asia and Pacific due to COVID-19:World Bank April 2020 Update

World Bank in its April 2020 Economic Update for East Asia and Pacific (EAP) titled “East Asia and Pacific in the Time of COVID-19″has stated that if the economic situation become worsen further due to COVID-19 consequences then the poverty is estimated to increase by about 11 million people in the EAP region.World Bank says about 11 million

  • The update has projected slow growth in the developing EAP region to 2.1% from an estimated 5.8% in 2019. Growth in China is also projected to decline to 2.3% from 6.1% in 2019.
  • If the uncertainty of COVID-19 were not arisen then under the baseline growth scenario, nearly 35 million people would have escaped across the EAP region in 2020.
  • The analysis in the report is based on the latest country-level data as of March 27.

Recommendations by World Bank:

-Requirement of urgent investments in national healthcare capacity and longer-term preparedness.

-Targeted fiscal measures such as subsidies for sick pay and healthcare would help in keeping things under control.

-The report calls for international cooperation by keeping trade open and through new cross-border public-private partnerships to ramp up the production and supply of key medical supplies and services in the face of the pandemic, and to ensure financial stability in the aftermath.

-Another policy recommendation is to ease credit to help households in smootheningtheir consumption.

Support by World Bank:

-The World Bank Group is rolling out a $14 billion fast-track package to strengthen the COVID-19 response in developing countries.

-The International Finance Corporation (IFC) is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs.

-International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA are making an initial US$6 billion available for the health-response.

-World Bank Group will also deploy up to $160 billion over 15 months to protect the poor and vulnerable, support businesses, and bolster economic recovery.

About World Bank:
Establishment– 1944
President– David R. Malpass
Headquarters– Washington, D.C., United States
Subsidiaries– International Bank for Reconstruction and Development (IBRD), International Development Association (IDA,) International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).