World Bank Warns "60 Million People at Risk of Falling into Extreme Poverty Due to COVID-19"

Global Economic Growth Rate Forecasted at -5%

[Asia Economy Reporter Naju-seok] David Malpass, President of the World Bank, predicted that the global economy would shrink by 5% this year due to the COVID-19 pandemic. He also warned that up to 60 million people worldwide are at risk of falling into extreme poverty due to the economic shock.

[Image source=Reuters Yonhap News]

At a press conference held on the 19th (local time) at the World Bank headquarters in Washington, USA, President Malpass stated, "Developing countries have suffered enormous damage due to the health and economic shocks caused by the COVID-19 pandemic and the lockdown policies to prevent its spread." He warned of a global economic contraction and assessed that "the efforts to eliminate extreme poverty worldwide over the past three years are at risk of disappearing."

President Malpass explained, "The World Bank is funding emergency programs in 100 countries, representing 70% of the global population, after efforts to provide rapid support to developing countries," adding, "Over the next 15 months, the World Bank will provide funding in the form of grants and low-interest loans totaling $160 billion (196 trillion won)." However, he appealed for the participation of governments and private creditors worldwide, stating, "Although the World Bank is making large-scale support efforts, this alone is insufficient."

He particularly emphasized that measures such as debt relief by the Group of Twenty (G20) and private creditors are necessary for the poorest countries to overcome the economic crisis. Last month, G20 finance ministers and central bank governors agreed to extend the debt repayment schedule for the poorest countries by 12 months.

President Malpass said, "Private creditors also hold a significant amount of bonds in the poorest countries," and added, "To implement the agreement reached by the G20, debt repayment relief for these bonds is necessary." He continued, "These countries must be allowed to reduce their debt burden and pour available resources into responding to COVID-19."

This content was produced with the assistance of AI translation services.