June 1 (SeeNews) - The novel coronavirus (COVID-19) is likely to affect household welfare across the Western Balkans through fewer jobs, loss of labour income and lower international remittances, the World Bank said.
"It is estimated that, in the Western Balkans, without considering government response measures, the COVID-19 crisis would push at least 400,000 people into poverty, and up to 950,000 if the crisis is prolonged," the World Bank said in a Regular Economic Report (RER) on poverty and household welfare in the Western Balkans on Friday.
Many of those who could become impoverished because of the COVID-19 crisis are not receiving social protection unless programmes are expanded, and informal workers without access to unemployment insurance and other support to the formal economy are particularly at risk, the World Bank said.
The self-employed, informal workers and those with casual jobs or less secure contracts are in particular danger, while non-labour income is also likely to fall because remittances will drop.
"Emigrant workers, especially those whose employment is temporary or informal, may lose jobs in European countries hit hard by the pandemic and lockdowns. Some of those emigrants will return home, at risk of being unemployed without access to social protection. Remittance inflows to families in the Western Balkans will fall," the World Bank said.
The World Bank recommended governments in the Western Balkans to ensure basic services, food security, shelter, and basic social services for the most vulnerable, and also to protect livelihoods and facilitate recovery, for informal as well as formal sector workers.