As least-developed countries (LDC) see significant decline in export earnings due to decreasing demand in key markets, falling commodity prices and a decline in remittances, they are likely to be the hardest hit by the Covid-19 crisis due to their limited resources to stimulate growth.
According to a World Trade Organization report just released, exports of textiles and clothing have been badly affected by declining global demand and supply chain disruptions.
In addition, LDCs that depend on tourism revenues are being hard hit by the slump in this sector.
There are currently 47 LDCs, 36 of which have become WTO members – and the pandemic is undermining the development gains of countries such as Angola, Bangladesh and Vanuatu which are expected to graduate from LDC status in the near future.
In view of the challenges facing them, LDCs have taken several measures to combat the pandemic, ranging from strengthening health care systems to providing stimulus packages to export-oriented sectors and liquidity support for small and medium-sized enterprises.
In early May they called on other WTO members to refrain from imposing export prohibitions or restrictions on medical goods and food. They urged governments to facilitate trade in these goods, including by implementing the provisions in the WTO’s Trade Facilitation Agreement.
