The Impact of Recession on Poverty
The World Bank has estimated that the poverty rate will further increase amid the risk of economic recession due to the Covid-19 pandemic.
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A. Prasetyantoko
Poverty, like death, is not just a matter of numbers. Poverty is bitterness and the struggle to overcome suffering. The World Bank has estimated that the poverty rate will further increase amid the risk of economic recession due to the Covid-19 pandemic.
The World Bank’s latest economic report titled “Indonesia Economic Prospects, July 2020: The long road to recovery” explains straightforwardly: without social assistance from the government, the poor will increase by between 5.5 million and 8 million people this year. The projected increase is mainly due to a 5 to 7 percent decrease in household income as a result of the increase in the number of people who lost their jobs.