How deep is the Covid-19 economic crisis compared to 2008?

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The Covid-19 Economic Crisis Is Deeper Than the 2008 Global Financial Crisis

The unfolding economic crisis stemming from the Covid-19 pandemic is more severe than the 2008 global financial crisis, with projections indicating a significant increase in global poverty. This deepening crisis could potentially push approximately half a billion people into poverty, a situation not seen since 1990, and might revert some nations to poverty levels last observed three decades ago.
A Significant Increase in Global Poverty

The economic fallout from the coronavirus pandemic is expected to have a profound impact on global poverty levels. According to an analysis by Oxfam, the crisis could lead to a rise in global poverty for the first time since 1990. This scenario is particularly concerning as it could set back progress made over the past thirty years, with some countries potentially returning to poverty figures from the early 1990s.
Impact on Extreme Poverty and Overall Livelihoods

Under a severe scenario involving a 20 per cent contraction in income, the number of individuals living in extreme poverty, defined as surviving on $1.90 a day or less, could surge by 434 million, bringing the global total to nearly 1.2 billion. Furthermore, the number of people living on less than $5.50 a day could increase by 548 million, reaching almost 4 billion worldwide. This illustrates the broad and devastating reach of the current economic downturn.
Vulnerability of Informal Sector Workers

Women and those in the informal economy are identified as being at greater risk during this crisis. Women are more likely to be employed in the informal sector, which often lacks employment rights and protections. Globally, over 2 billion informal sector workers have no access to sick pay, meaning they cannot afford to take time off work even when ill, further exacerbating their economic precarity.
Scale of Financial Mobilisation Needed

To combat the widespread economic devastation, a substantial financial mobilisation is required. Oxfam's report suggests that governments worldwide would need to mobilise at least $2.5 trillion to support developing nations. The charity highlighted that rich countries have demonstrated the capacity to mobilise trillions for their own economies during this crisis, implying that similar levels of support are necessary for developing countries to manage the health and economic impacts.

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How deep is the Covid-19 economic crisis compared to 2008?

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