Manila, March 16 (BNA) The Asian Development Bank said the pandemic added 4.7 million people to the poorest regions of Southeast Asia in 2021, reversing gains made in fighting poverty, while urging governments to take steps to boost the economy. growth.
The number of people living in extreme poverty – those living on less than $1.90 a day – reached 24.3 million last year, or 3.7% of Southeast Asia’s total population of 650 million, the Asian Development Bank said in a report.
Before the pandemic, the numbers of those living in extreme poverty in Southeast Asia were in decline, recording 14.9 million in 2019, down from 18 million in 2018 and 21.2 million in 2017, according to Reuters.
“The pandemic has led to widespread unemployment, exacerbated inequality, and high levels of poverty, especially among women, young workers and the elderly in Southeast Asia,” said Asian Development Bank President Masatsugo Asakawa.
Asakawa urged governments to improve health systems and simplify regulations to boost business competitiveness, invest in smart and green infrastructure and adopt technology to accelerate growth.
The Asian Development Bank said there will be 9.3 million fewer workers in Southeast Asia in 2021 as COVID-19 restrictions slash economic activity, leaving millions without work.
Its 2021 growth forecast for Southeast Asia was 3.0%.
The region was expected to grow 5.1% this year, but the Omicron COVID-19 variant could lower growth forecasts by as much as 0.8 percentage points if it spreads further and triggers supply and demand shocks, the ADB said.
“The challenge will be what does the medium term hold. Will this affect the region’s recovery from the pandemic and the financial challenges it will face?” Subramaniam said when releasing the report.
“How can we ensure that any spillovers do not become dangerous in the case of Southeast Asia?”
The conflict has forced policy makers in Asia to rethink their 2022 assumptions, with the risks of weak growth coupled with higher prices adding unwanted complication to monetary policy making plans.
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