World Bank Reports: 700 Million People Survive on Less Than $2.15 Per Day

World Bank Reports: 700 Million People Survive on Less Than $2.15 Per Day

World Bank Report: 700 Million People Live on Less Than $2.15 Per Day

The World Bank’s 2024 Year in Review report has revealed that approximately 700 million people, or 8.5% of the global population, are living in extreme poverty, surviving on less than $2.15 a day.

Furthermore, about 3.5 billion people—over 40% of the world’s population—live on less than $6.85 daily, a poverty line more relevant to middle-income countries, which constitute three-quarters of the global population.

The report warns that without significant interventions, it may take decades to eradicate extreme poverty and over a century to eliminate poverty as defined for nearly half of the global population.

Poverty Beyond Income

The World Bank emphasizes that poverty extends beyond monetary deprivation, encompassing limited access to education, healthcare, electricity, safe drinking water, sanitation, and other essential services.

As of 2024, more than one-third of individuals in countries eligible for the World Bank’s International Development Association (IDA) support and over half of those in Sub-Saharan Africa experience multidimensional poverty.

Debt and Economic Challenges

The report also sheds light on the severe debt burdens facing the poorest economies, exacerbated by the COVID-19 pandemic. By the end of 2023:

• Low- and middle-income countries had amassed a record $8.8 trillion in external debt, an 8% increase since 2020.
• Interest payments surged nearly 30%, reaching $406 billion, significantly straining resources for vital sectors like health, education, and environmental sustainability.

In response, the World Bank has prioritized improving debt sustainability, transparency, and management capacity in developing nations. Since 2022, it has contributed an additional $51 billion to IDA-eligible countries, with one-third coming directly from the World Bank.

READ MORE: BREAKING: Nigeria faces a fiscal deficit of ₦7 trillion as of Q3 2024.

Economic Outlook

• Global Growth: Projected to remain at 2.6% in 2024, with modest increases expected in 2025 and 2026, though still below the pre-pandemic average of 3.1%.
• Developing Economies: Growth is forecast at 4% in 2024, signaling a sluggish recovery for regions home to over 80% of the global population.
• Commodity Prices: Expected to decline by 10% between 2024 and 2026, but high food prices in developing countries are likely to persist, with food inflation remaining double that of advanced economies.

The report underscores the urgent need for coordinated global action to address poverty and economic inequality, emphasizing that tackling multidimensional poverty and improving debt sustainability are crucial to fostering inclusive growth.