685m people could be living in extreme poverty by end of 2022, says World Bank

The World Bank says a total of 685 million people could be living in extreme poverty by the end of 2022.

The international financial organisation, in its report titled ‘2022 in nine charts’, said slowing economic growth contributed to a reversal of progress on the global poverty agenda and an increase in global debt.

The bank further projected that seven percent of the world’s population would be in extreme poverty in 2030.

“The COVID-19 pandemic dealt the largest setback to global poverty reduction efforts in decades, and the recovery has been highly uneven,” the report reads.

“By the end of 2022, as many as 685 million people could be living in extreme poverty — making 2022 the second-worst year for poverty reduction in the past two decades (after 2020).

“In addition to the lingering effects of the pandemic, rising food and energy prices—fueled by climate shocks and conflicts such as the war in Ukraine—have hindered a swift recovery.

“It is now projected that 7 percent of the world’s population — roughly 574 million people — will still struggle in extreme poverty in 2030 — far short of the global goal of 3 percent in 2030.”

The World Bank also said the past year saw the debt crisis facing developing countries intensify with some 60 percent of the world’s poorest countries either in debt distress or at risk of it.

“Over-encumbered with debt, the world’s poorest are not able to make critical investments in economic reform, health, climate action, or education — among other key development priorities,” the report added.

“Perhaps more significantly, the composition of debt has changed dramatically since 2010, with private creditors playing an increasingly larger role.”

According to the bank, the global economy is now in its steepest slowdown following a post-recession recovery since 1970 — with global consumer confidence already suffering a much sharper decline than during the run-up to previous global recessions.

It said the world’s three largest economies — the United States, China, and the Euro area — have been sharply slowing.

Under the circumstances, the bank explained, even a moderate hit to the global economy over the next year could tip it into recession.