COVID-19 ‘Devastating Blow’ for Global Economy, Says World Bank Chief

While talking to BBC Radio 4’s The World This Weekend, Malpass said, “It [Coronavirus] has been a devastating blow for the economy. The combination of the pandemic itself, and the shutdowns, has meant billions of people whose livelihoods have been disrupted. That’s concerning.”
“Both the direct consequences, meaning lost income, but also then the health consequences, the social consequences, are really harsh,” he said, especially for those who could least afford it, pointing to the rising U.S. stock market while there is news of countries going into recession.

In May, he had warned that 60 million people could be pushed to “extreme poverty,” that is living on less than $1.90 per person per day.
Malpass admits that national calls for ‘going local’ and putting barriers to trade, may cause more harm.
“When trade is reduced, that creates its own set of tensions and inequality… I’m sure [the global economy] will be interconnected in the future, maybe less than it was pre-COVID.”
While countries may recover in the future, he admits the challenges that lie on the route, will cause considerable pain.