World Bank foresees poverty increase due to Covid-19

According to the Malawi Economic Monitor (MEM) compiled by the world bank, poverty is likely to rapidly increase in the country, due to the coronavirus.

The bi-annually released publication by the World Bank, states that 880,000 Malawians may go into poverty as the economy is expected to shrink to -3.8%, should the pandemic not be contained by September this year.

“The forecasted increase in urban poverty could range from 1.6 percentage points representing around 280,000 Malawians in the baseline growth forecast, up to 4.9 percentage points around 880,000 people in the downside scenario,” says part of the MEM.

Prior to the world bank projections, a 2019 African Economic Outlook Report showed that poverty registered an increase to 51.5% in 2017, from 50.4% in 2010. Comparing the study to a National Statistical Office (NSO) Malawi Poverty Estimation Report from 2016/17, the two studies agree that moderate poverty levels in the country did not change.