Overview

At the beginning of the millennium the least developed countries (LDCs) enjoyed the strongest and longest growth rates since the 1970s, benefiting from sustained global growth, surging commodity prices and buoyant capital flows. Between 2000 and 2008, the average annual growth of the group’s real gross domestic product (GDP) exceeded 7 per cent, raising hopes that some LDCs may be able to graduate from this category within the present decade. However, since the outbreak of the global financial crisis in 2008 and the drastic change in external conditions, LDCs have experienced a slowdown of economic activity. As a result, their economic growth has been much weaker during the past five years and well below the target rate of 7 per cent annual growth established in the Istanbul Programme of Action (IPoA), and considered necessary for attaining the Millennium Development Goals (MDGs).

Related Subject(s): Economic and Social Development