The United Nations has warned the economic downturn because of the pandemic could wipe out the gains of the last four years, at a cost of $8.5 trillion (£7tn) in economic activity. The UN’s assessment of global prospects says more than 30 million people are likely to fall into extreme poverty this year, mainly in Africa.
The UN expects the rich economies to shrink more at 5%, but for the developing world even the more moderate decline predicted means a marked increase in poverty.
For many of those countries, the report says,
the costs of fighting the pandemic and economic stimulus measures will be prohibitive. It also says developing country governments are spending an ever-increasing share of their revenue on debt interest.
Elliott Harris, UN chief economist and assistant secretary-general for economic development, said: “The pace and strength of the recovery from the crisis not only hinges on the efficacy of public health measures in slowing the spread of the virus, but also on the ability of countries to protect jobs and incomes, particularly of the most vulnerable members of our societies.”
Separately, a group of leading politicians, including the former US presidential candidate Bernie Sanders, have called for the cancellation of some of the debts owed by the poorest countries.
BBC
