Development finance landscape in times of the COVID-19 pandemic

As has been seen in the case of previous external shocks, the COVID-19 pandemic has put pressure on the financing possibilities of developing countries. The financing requirements of developing countries to combat the crisis and stabilize the financial situation have been estimated by the IMF at around $2.5 trillion (Georgieva, 2020). The economic shock developing countries suffered in second quarter of 2020 was unprecedented. Net portfolio outflows from the main emerging economies amounted to around $60 billion in just one month. This is more than double what these countries experienced in the immediate aftermath of the global financial crisis of 2008/09. The spreads on developing country bonds have risen sharply, currencies have depreciated strongly, exports of developing countries dropped precipitously, and commodity prices also weakened (UNCTAD, 2020e).

Sustainable Development Goals:

Good Health and Well-Being

Decent Work and Economic Growth

Responsible Consumption and Production