COVID-19 may push 11 million into poverty, cut China's growth rate by half: World Bank

coronavirus pandemic in China may be getting better but dam may already be done in terms of a blow to Chinese ecomy. According to reports, World Bank on March 30 warned that due to impact of coronavirus, China’s growth could come to a standstill and also drive 11 million people in East Asia into abject poverty.

virus causes unprecedented shock

As per reports, Aaditya Mattoo, World Bank chief ecomist for East Asia and Pacific claimed that virus had caused an unprecedented shock and this could bring growth to a screeching halt and as a result increase rate of poverty and unemployment across region. As per organisation's report, region will see a sharp drop in growth and China’s growth is reportedly expected to fall down to 2.3 per cent from 6.1 per cent in 2019.

Due to coronavirus, millions of people are in some form of lockdown in an effort to try and contain spread of deadly virus. According to reports, manufacturing activity and industrial production in China reduced for first time in 30 years. According to World Bank report, even in best-case scenario of a strong recovery after a sharp slowdown can result in almost 24 million fewer people in region escaping poverty. In worst-case scenario, 11 million people could w descend into poverty if slowdown is followed by a sluggish recovery.

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World Bank has called for implementation on measures that would cushion reduction in household ws. reports also added that in a globalized ecomy, ‘destinies’ of many nations ecomies are interlinked and that a negative impact in China’s ecomy will affect or nations as well.

According to reports, Mattoo claimed that world should follow South Korea’s example and increase testing so that ecomies and nations could return to rmal soon.

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