MANILA -The Asian Development Bank (ADB) has reported that nearly 70 million more people in developing Asia fell into extreme poverty due to the COVID-19 pandemic and rising living costs.

According to the ADB's recent report, approximately 155.2 million individuals in developing Asian countries, equivalent to 3.9% of the region's population, were living in extreme poverty last year. This figure represents an increase of 67.8 million people compared to the scenario without the pandemic and cost-of-living challenges.

Developing Asia encompasses 46 economies in the Asia-Pacific region, excluding Japan, Australia, and New Zealand. The ADB's Chief Economist, Albert Park, noted that while Asia and the Pacific are making progress in recovering from the pandemic, the rising cost of living is hindering efforts to combat poverty.

Extreme poverty is defined as living on less than $2.15 per day, based on 2017 figures. Inflation in many countries has surged to multi-year highs due to economic rebounds and supply chain disruptions.

Rising prices had a widespread impact, but it was felt most acutely by lower-income individuals who had to allocate more of their income to essentials like food and fuel. Consequently, saving money and covering basic needs such as healthcare and education became increasingly challenging for them.

ADB Chief Economist Albert Park emphasized the importance of reinforcing social safety nets for impoverished populations and stimulating investment and innovation to generate growth and job opportunities. These actions, he noted, could help governments in the region regain their economic footing.

Despite the pandemic's disruptions, developing Asia was initially projected to achieve a growth rate of 4.8% in the current year, surpassing the 4.2% expansion recorded the previous year, as indicated by the ADB in July.

However, the ADB's report also pointed out that by 2030, around 1.26 billion people, equivalent to 30.3% of the region's population, would still be classified as economically vulnerable, underscoring the ongoing challenges in addressing poverty.