How can the European Union help developing countries address the socioeconomic impacts of the coronavirus crisis?

San Bilal and Dirk Willem te Velde, April 2020

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With the global economy going into a steep recession, developing countries are facing considerable financing shortfalls. The UN Conference on Trade and Development warns of a $2.5 trillion finance shortfall; Asian forecasts are down by 5–10 percentage points; Africa is already facing major impacts. The UN Secretary-General has called for a $2.5 trillion fund for developing countries. African finance ministers have called for $100 billion. The average fiscal stimulus in Europe so far (12% of gross domestic product) is 15 times higher than in the poorer African countries (0.8%) – as the latter cannot afford it. This note discusses EU actions to support developing countries to address the coronavirus crisis

Photo: Loan repayment schedule. Simone D. McCourtie / World Bank. Licence: (CC BY-NC-ND 2.0)