The effects of COVID-19 on industry in least developed countries - UNIDO Industrial Analytics Platform

It is not unreasonable to assume that the COVID-19 pandemic’s economic impact must have been particularly severe in least developed countries (LDCs) due to, among others, their reduced resilience and diminished capacity to respond to shocks. LDCs have faced reduced external demand, falling prices of key commodities such as oil, a dramatic decrease in tourism activity, weakening foreign direct investment (FDI) and debt challenges1. While more developed countries are rapidly building back better, LDCs could fall behind due to both financial restrictions and being sidelined in international production networks. We examine the COVID-19 pandemic’s impact on industry in LDCs to inform the debate on what can be done to build industries forward differently once the pandemic winds down.