Half a billion people could be pushed into poverty by coronavirus economic fallout, study findshttps://www.abc.net.au/news/image/12136302-3x2-700x467.jpg

The impact of the COVID-19 pandemic on the global economy could see as many as 580 million people — 8 per cent of the world's population — pushed into poverty, according to researchers.

Key points:

• Researchers say even on a conservative estimate, the pandemic could drive 100 million people into extreme poverty
• Consecutive Australian Governments have cut the foreign aid budget, particularly to Asia
• Oxfam is calling for cancellation of developing nations' foreign debt to wealthier states

Aid groups, meanwhile, are calling on rich countries to cancel foreign debt held by developing nations in light of projections that decades of poverty alleviation efforts could be lost.

A paper released by the United Nations University World Institute for Development Economics Research projects that if consumption contracts in developing countries by 20 per cent, it could see an increase in poverty for 400 to 600 million people globally.

"We were surprised at the sheer scale of the potential poverty tsunami that could follow COVID-19 in developing countries," said Professor Andy Sumner, one of the lead authors from King's College London