MANILA, March 16 (Reuters) – More than four million additional people were in extreme poverty in Southeast Asia in 2021 due to the coronavirus pandemic, the Asian Development Bank (ADB) said on Wednesday.
The number of people in extreme poverty – that is to say benefiting from less than 1.90 dollars (1.73 euros) to live on a day – was 24.3 million last year, or 3.7% of the total population of Southeast Asia, explains the AfDB in a report.
Before the pandemic, this figure was in decline, 14.9 million people lived below the extreme poverty line in Southeast Asia in 2019, compared to 18 million in 2018 and 21.2 million in 2017.
“The pandemic has led to widespread unemployment, deepening inequalities and increasing poverty levels, especially among women, youth and the elderly in Southeast Asia,” said AfDB President Masatsugu Asakawa. .
Masatsugu Asakawa urged governments to improve healthcare systems, streamline regulations to boost business competitiveness, invest in smart and green infrastructure, and embrace technology to accelerate growth.
The region is expected to grow by 5.1% this year, but the Omicron variant could reduce that growth outlook by 0.8 percentage points if it spreads further and causes supply and demand knock-on effects, said said the AfDB.
AfDB Managing Director Ramesh Subramaniam said Southeast Asia’s growth outlook will be revised to reflect the impact of Russia’s invasion of Ukraine, which should be “manageable”.
“The challenge will be what the medium term holds. Will this affect the region’s post-pandemic recovery and the fiscal challenges it will face?” Subramaniam said.
“How can we ensure that the ripple effects don’t become severe in the case of Southeast Asia?” he added. (Reporting by Karen Lema; Editing by Martin Petty)
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