Manila: The pandemic will add 4.7 million more people to Southeast Asia’s most extreme poor in 2021, the Asian Development Bank (ADB) said on Wednesday, reversing gains in fighting poverty, while calling on governments to boost economic growth. urged to take action.
ADB said in a report that the number of people in extreme poverty – defined as those living on less than $1.90 a day – last year stood at 24.3 million, or 3.7% of Southeast Asia’s collective 650 million population .
Before the pandemic, the number of people living in extreme poverty in Southeast Asia was on the decline with 14.9 million in 2019, 18 million in 2018 and 21.2 million in 2017.
“The pandemic has led to widespread unemployment, worsening inequality and rising poverty levels, especially among women, young workers and the elderly in Southeast Asia,” said ADB President Masatsugu Asakawa.
Asakawa urged governments to improve health systems, streamline regulations to boost business competitiveness, invest in smart, green infrastructure, and adopt technology to accelerate growth.
ADB said there were 9.3 million less employed workers in Southeast Asia in 2021 as COVID-19 curtailed economic activity, leaving millions without work. Its 2021 growth forecast for Southeast Asia was 3.0%.
ADB said the sector was projected to grow 5.1% this year, but the Omicron COVID-19 version could cut its growth outlook by 0.8 percent if it spreads further and triggers supply and demand shocks. , so said ADB.
The 2022 projection had not yet taken into account the economic impact of Russia’s invasion of Ukraine. That conflict has forced policymakers in Asia to rethink assumptions for 2022, with the risk of weak growth as well as rising prices adding unwanted complexity to monetary setting plans.
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