Falling living standards during the COVID-19 crisis: Quantitative evidence from nine developing countries

Area of Science:

• Socioeconomic impacts of global health crises
• Economic resilience in developing nations
• Quantitative social science research

Background:

• Limited quantitative data exists on the economic effects of the COVID-19 pandemic in low- and middle-income countries.
• Official statistics often fail to capture informal sectors and subsistence agriculture prevalent in these regions.

Purpose of the Study:

• To provide systematic quantitative evidence on the economic conditions of households in low- and middle-income countries during the COVID-19 pandemic.
• To assess the impact on employment, income, food security, and living standards.

Main Methods:

• Conducted 16 original household surveys across nine countries in Africa, Asia, and Latin America.
• Collected data from over 30,000 respondents regarding employment, income, and coping strategies.
• Analyzed economic conditions and household vulnerability starting March 2020.

Main Results:

• Documented widespread declines in employment and income across all surveyed countries beginning March 2020.
• Reported that 8% to 87% of households experienced an income drop (median 68%).
• Found household coping strategies and government aid insufficient to prevent food insecurity and economic distress.

Conclusions:

• The COVID-19 pandemic severely impacted economic stability in low- and middle-income countries, leading to widespread food insecurity.
• Existing support systems were inadequate to mitigate the crisis's immediate economic fallout.
• Persistent adverse effects are anticipated, particularly for vulnerable populations like children.