Could global poverty rise for the first time since 1990?

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Global poverty could increase for the first time since 1990 due to the coronavirus crisis.

The economic fallout from the coronavirus pandemic is projected to push approximately half a billion people into poverty, marking a potential reversal of decades of progress. This economic crisis is estimated to be more severe than the 2008 global financial crisis. Projections indicate that global poverty rates may rise for the first time since 1990, potentially reverting some nations to poverty levels not seen in roughly three decades.
Impact of a 20% Income Contraction

Under a severe scenario where global income contracts by 20%, the number of individuals living in extreme poverty, defined as living on US$1.90 a day or less, could increase by 434 million. This would bring the total number of people in extreme poverty to nearly 1.2 billion worldwide.
Increase in Those Living Below US$5.50 a Day

The same 20% income contraction scenario also projects a significant rise in the number of people living below the US$5.50 a day poverty line. This threshold could see an increase of 548 million people, pushing the total to almost 4 billion globally.
Vulnerability of Informal Workers

The crisis disproportionately affects women, who are more likely to be employed in the informal economy and possess limited employment rights. Globally, over 2 billion workers in the informal sector lack access to sick pay, making them particularly vulnerable as they cannot afford to take time off work or stockpile necessities.
Broader Economic Repercussions

The report highlights that the economic crisis unfolding is deeper than the 2008 financial crisis. The potential increase in global poverty could undo progress made since 1990, pushing some countries back to socio-economic conditions last observed approximately thirty years ago.

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Could global poverty rise for the first time since 1990?

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