Inflation, Covid plunges 68m into poverty in Asia

Deutsche Welle :
Higher inflation coupled with the Covid-19 pandemic pushed nearly 68 million people in Asia into extreme poverty as of last year, according to a report published by the Asian Development Bank (ADB).

An estimated 155.2 million people in developing Asia, which is 3.9% of the region’s population, lived in extreme poverty as of last year.

This figure was 67.8 million higher than what it would have been without the pandemic and cost-of-living crises, the report said Thursday.

Extreme poverty, based on 2017 prices adjusted for inflation, is defined as living on less than $2.15 (€1.98) a day. Both the pandemic and growing geopolitical tensions have disrupted supply lines in the last few years leading to higher inflation across the world.

While Asia and the Pacific are steadily recovering, the dual crises is “undermining progress toward eliminating poverty,” said ADB Chief Economist Albert Park.

“By strengthening social safety nets for the poor and fostering investment and innovation that creates opportunities for growth and employment, governments in the region can get back on track.”

In 2021, ADB estimated that the pandemic had pushed an additional 80 million people into extreme poverty as of the previous year, when compared to pre-pandemic projections.

Poor and women affected disproportionately The poor have been hurt most by inflation as they are unable to pay for the higher prices of food, fuel and other necessities.

It also erodes their income, leaving fewer savings for healthcare, education or other opportunities which can improve their situation in the long term, the report said.