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Coronavirus is devastating the world economy

The coronavirus pandemic is a “devastating blow” to the world economy, according to World Bank President David Malpass.

Mr. Malpass warned that the livelihoods of billions of people would be affected by the pandemic.
He said the economic impact could last a decade.

In May Mr Malpass warned that the impact of the coronavirus could push 60m people into “extreme poverty”.

The World Bank defines “extreme poverty” as living on less than $1.90 (£1.55) per person per day.

But more than 60 million people live on less than 1 pound a day, Malpass said in an interview on Friday.

Mr Malpass told BBC Radio 4’s World Weekend: “It [the coronavirus] has been devastating to the economy.

The combination of the pandemic itself and the shutdown means the livelihoods of billions of people have been disrupted.
This is worrying.

“The immediate consequences mean both loss of income and serious harm to health and social consequences.”

Mr Malpass warns that those who can afford it will suffer most.
“We can see that because of the relatively high stock market in the United States, people in poor countries are not only unemployed, but also unable to get any jobs even in the informal sector.
This will have ten-year consequences.

Targeted government support and measures to support the private sector are also critical to rebuilding the economy, according to the Bank.

Investment and support will create jobs in areas such as manufacturing to replace those in the most affected sectors, such as tourism, which may have been lost permanently.

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