The International Monetary Fund has projected a deep global recession with a 5% drop in world GDP. But for smaller economies, the predicted contraction is almost 8% - double that of larger or more resilient economies.
Tens, maybe hundreds, of millions of jobs have already been lost.
SIDS that depend on tourism – even those with no cases of COVID-19 – stand by with empty hotels and deserted beaches, waiting for the visitors to return.
According to the World Bank, countries that rely on family members to send money home each month are set to lose remittances of US$110 billion this year. This would mean 800 million people, most of them in Least Developed Countries, unable to meet their basic needs, just as food prices rise and international supply chains lie crippled by the pandemic.
The pandemic is impacting the LDCs, LLDCs and SIDS disproportionately with devastating impacts on human health, economies, education and other sectors.
Most of the vulnerable states lack sufficient domestic financial resources to cope, and when combined with high levels of debt and fragile health systems, the challenge is urgent.