The United Nations Conference on Trade and Development (UNCTAD), in a report released on Thursday, 3rd December, 2020, stated that the number of people living in extreme poverty will increase by more than 32 million in 2021 due to the COVID-19 pandemic.
UNCTAD noted the negative effect of the pandemic on the economy especially in Least Developed Countries (LDCs) where the poor are most affected, as well as global poverty and food insecurity.
According to UNCTAD, the economic growth forecast for LCDs between October 2019 and October 2020 revised downwards from 5 to -0.4 per cent.
The report by UNCTAD says, “This revision is expected to lead to a 2.6 per cent reduction in per capita income in LDCs in 2020, with 43 out of 47 LDCs experiencing a fall in their average income levels.
This is the worst economic outcome in 30 years for this group of countries, and represents a significant reversal of the economic and social progress achieved in recent years, including in terms of poverty and social outcomes.”
The UN further stated that a poverty line of $1.90 per day is expected to increase by 3 percentage points — from 32.2 to 35.2 per cent.
