As per the report released by the UN Conference on Trade and Development (UNCTAD), the economies that will face a severe hit by the novel coronavirus are Pakistan, Argentina, and the Sub-Saharan African countries. These economies will suffer from growing debts as well as a terrible impact on the health sector.
Director of globalization and development strategies at UNCTAD Richard Kozul-Wright remarked, “It is going to be really bad.”
He further said, “The international institutions have to take these sorts of proposals very, very seriously as it’s the only way that we can see to prevent the damage already taking place and which will get worse.”
He estimated a $2-$3 trillion financing dearth over 2020-2021 due to the coronavirus pandemic. To overcome the economic crisis, developing countries need a $2.5 trillion support package at least for this year.
The report stated that the developing countries need to utilize the support package as:
- $1 trillion liquidity injection
- $1 trillion debt relief package
- $500 million will be needed for emergency health services
UNCTAD considers around 170 countries to be developing but the financing gap figure stripped out China and South Korea.
Kozul-Wright oversaw the report and said, “If G20 leaders are to stick to their commitment of ‘a global response in the spirit of solidarity’, there must be commensurate action for the six billion people living outside the core G20 economies.”