The chief economist of the World Bank warned today that global trade continues to be tight, investment is suspended, there is no cash to stimulate economic growth, and poverty may skyrocket.
When the World Bank’s chief economist, Pinelopi Koujianou Goldberg, told AFP, the economy did not grow, “people will suffer.”
When the economy is full of uncertainty, investment reduces growth, especially in poor areas such as Africa.
Goldberg said: “This means that some countries can never get rid of poverty… It also means that countries that are able to escape from poverty, and those that are now in the middle of income may be regressing and may go back.”
Goldberg said that Africa, where poverty is concentrated and whose economy is more vulnerable, is particularly worried that the level of debt is higher than in the past.
In addition, the World Bank released a report today warning that if trade conflicts worsen, “more than 30 million people may fall into poverty (that is, less than $5.5 a day).”
But Goldberg said that if policymakers take action and participate in the so-called “global value chain,” trade can continue to be the lifeline of the country’s poverty alleviation.