MANILA: The Asian Development Bank (ADB) has highlighted that the coronavirus pandemic and rising living costs have pushed an additional 68 million individuals in developing Asia into extreme poverty, significantly hampering efforts to mitigate destitution.
A recent report by the ADB reveals that approximately 155.2 million people in developing Asia, equivalent to 3.9% of the region’s population, were living in extreme poverty last year. This figure surged by 67.8 million due to the combined impact of health crises and escalating living expenses.
Developing Asia comprises 46 economies within the Asia-Pacific region, excluding Japan, Australia, and New Zealand.
“While Asia and the Pacific are making steady strides towards recovery from the COVID-19 pandemic, the mounting cost-of-living crisis is impeding progress in eradicating poverty,” remarked Albert Park, Chief Economist for the Asian Development Bank (ADB).
Extreme poverty, defined as subsisting on less than $2.15 per day using 2017 data, paints a grim picture of the challenges faced by these vulnerable populations.
Last year, inflation surged to multi-year highs across various countries, driven by renewed economic activity and notable disruptions in supply chains.
The impact of these price hikes was felt broadly, but it disproportionately affected the most impoverished individuals, who had to allocate a greater portion of their income to food and fuel. This circumstance hindered their ability to save and cover essential expenses such as healthcare and education.
“To regain momentum, governments in the region can enhance social safety nets for those in need and promote investment and innovation that generates opportunities for growth and employment,” urged Park.
In July, the ADB projected that developing Asia would experience a growth rate of 4.8% this year, surpassing the previous year’s 4.2%.
Despite positive economic strides anticipated in the region, the ADB predicts that around 1.26 billion people, roughly 30.3% of the population, may remain economically vulnerable by the year 2030.
