Asia’s Easing Economic Headwinds Make Way for Stronger Recovery
IMFFeb 20, 2023
According to a report released by the Asian Development Bank on Thursday, over 155M people in developing Asian countries live in extreme poverty — nearly 68M more than if COVID and subsequent economic inflation had not occurred.
While Asia and the Pacific are steadily recovering from the pandemic, the report claims cost-of-living crises are “undermining progress toward eliminating poverty.”
While eliminating poverty in developing Asia may seem like a lofty goal, unprecedented economic growth has led to significant progress. COVID hurt everyone globally, especially vulnerable people in developing Asia, but prospects are looking up. China’s reopening and stabilization of supply chains will allow growth to continue, creating a better economy for the entire continent.
Tens of millions of people continue to live in poverty in developing Asia, as the economic growth across the region is sporadic. Inflation is the key culprit, as economically vulnerable people can’t afford the rising cost of living, healthcare, and education. There may be some positives in Asia’s recovery from the pandemic, but social safety nets for the poor are yet to be strengthened to get the region back on track.
There is a 17% chance that fewer than 375M people will be in extreme poverty by 2023, according to the Metaculus prediction community.