The IMF issued a report on the global economic outlook that projected global growth would contract more than 4% this year. Marketplace consulted Eric on the projection and what it means for everyday people in developing countries. Read an excerpt below, and click here for the full story.
IMF encourages countries affected by COVID to keep spending on safety net
The IMF says close to 90 million people could fall into extreme poverty — living on less than a $1.90 per day — as COVID-19 widens the global wealth gap. Eric LeCompte heads Jubilee USA Network, a coalition of aid organizations. He said people on the lowest rungs of the economic ladder — migrant workers and low-skilled factory workers — are most at risk.
“We are looking at perhaps half the world’s population living in extreme poverty,” LeCompte said.
The solution, according to the IMF, is that countries should borrow and spend big to strengthen the social safety net. That means health care coverage, unemployment benefits and job retraining.
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