Amidst Rising Inequality, Ninety-Five Million Could Fall into Extreme Poverty
"The pandemic will reverse the progress made since the 1990s in reducing global poverty and will increase inequality," states the IMF in its flagship World Economic Outlook report.
"The forecasts of rising inequality and tens of millions of people falling into extreme poverty must be averted," stated Eric LeCompte who monitors the IMF and is the Executive Director of the religious development group Jubilee USA Network. "We can reverse these dire predictions with strong aid packages and deep debt relief for all developing countries."
According to the Fund, the crisis could drive 95 million more people into extreme poverty, living on less than $1.90 a day.
"We have the resources and the ability to act now," said LeCompte. "We cannot allow decades of development to be lost."
Some wealthy countries are rebounding more quickly due to stimulus, according to the IMF.
"While IMF forecasts remain uncertain due to the depth of the crisis, the Fund predicts inequality will deepen between rich and poor countries," noted LeCompte.
Read the IMF's World Economic Outlook report here.
Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.