Coronavirus To Leave 'Lasting Scars', Emerging Markets & Developing Economies Will Be Worst Hit: World Bank

World Bank Group President David Malpass emphasised the need for comprehensive policies and indicated that 60 million people could be pushed into extreme poverty in 2020.

The World Bank has approved USD 722 million loan for Pakistan that will largely be used for improving civic and public transport facilities in Karachi, according to a media report. (AFP)

New Delhi: The World Bank has said that the Coronavirus pandemic and strict lockdown measures taken to contain its transmission will leave a lasting effect on the global economy particularly the emerging market and developing economies, in its analysis of the situation. It urged the countries to undertake comprehensive policies with short-term measures to deal with the health emergencies at hand along with policies aimed at boosting long term growth. In an analysis, the World Bank had  said that effects of measures imposed in wake of Covid-19 can lead to weakening of investment, innovation, employment, education, trade, supply chains and consumption. World Bank Group President David Malpass emphasised the need for comprehensive policies and indicated that 60 million people could be pushed into extreme poverty in 2020. He said that the scope and speed of Covid-19 pandemic shutting down economies and devastating poor around the world was unprecedented so far. "Current estimates show that 60 million people could be pushed into extreme poverty in 2020. These estimates are likely to rise further, with the reopening of advanced economies the primary determinant," Malpass said during release of analytical chapters from World Bank’s flagship Global Economic Prospects report, in a conference call. The world Bank emphasised that economies already had growth projections downgraded repeatedly over the past decade amid steadily declining potential growth, and may worsen situation emerging market and developing economies (EMDEs). Malpass said that those emerging market and developing economies will be particularly hard hit which rely global trade, tourism, or remittances from abroad as well as those that depend on commodity exports . In such economies, deep recessions associated with the novel coronavirus pandemic will likely exacerbate the multi-decade slowdown in growth and productivity, the primary drivers of higher living standards and poverty reduction. (Based on inputs from agencies)