This Is How Much Each Individual Has to Raise Now Due to COVID-19

This Is How Much Each Individual Has to Raise Now Due to COVID-19

Published June 30th, 2020 - 08:00 GMT

Highlights

Pandemic lockdowns' economic shock will cost the world $12 trillion by 2021 end, says IMF

Imagine a scenario where every man, woman, and child on the planet had to suddenly come up with $1,600 in cash.

For some in the wealthy West, it would be a small change, but for others, it would be a significant task. For the world's middle classes, it would require a readjustment of spending priorities “” perhaps a vacation canceled, or a big purchase delayed.

Given that gross domestic product per capita “” how much each person in the world earns on average per year “” is around $18,000, according to estimates by economists, $1,600 would be a big lump sum to meet for many.

For hundreds of millions in the developing and emerging world, it would be a life-or-death situation. For people in Liberia or Mozambique, for example, $1,600 is more than the annual salary, according to the World Bank. Having to hand over that cash would mean not being able to eat or get medical care.

That is the situation effectively forecast by the International Monetary Fund (IMF). The economic shock from the pandemic lockdowns and the ongoing damage it is doing to