You are here: Home » Current Affairs » News » National
Business Standard

Worst recession in South Asia; millions falling into poverty: World Bank

India, the region's biggest economy, is likely to see its economy contract by 9.5% this year, the World Bank report said

poverty | South Asia | Lockdown

Reuters  |  NEW DELHI 

Poverty, jobs
With 6.84 million people infected, India's Covid-19 caseload is second only to the US.

Millions of people in are being pushed into extreme as the region where a quarter of humanity lives suffers its worst-ever due to the devastating impact of the pandemic, the World Bank said on Thursday.

The multi-lateral lender forecast a record economic contraction of 7.7% for this year, and said workers in the informal sector were being hit hardest, and private consumption was unlikely to recover quickly from the blow.

"The impact on livelihoods will even be larger than the GDP forecast suggests...This implies that the region will experience a sharp increase in the rate," the bank said in its bi-annual report.

India, the region's biggest economy, is likely to see its economy contract by 9.5% this year, the report said.

The report warned that South Asia's economies could end up worse than the forecast as the pandemic continues to surge, making foreign investors more wary, limiting governments' ability to increase spending and putting more strain on banking systems already heavily burdened with bad loans.

With 6.84 million people infected, including 105,000 dead, India's COVID-19 caseload is second only to the United States, despite the country going under the strictest in the initial phase of the pandemic in March.

Pakistan and Bangladesh have recorded over 317,000 cases each, while the rest of the countries in the region have combined total of over 149,000 cases.

(Reporting by Aftab Ahmed in New Delhi; Editing by Simon Cameron-Moore)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 08 2020. 13:43 IST