Developing countries, including Pakistan, will be hit hardest by the economic shockwaves caused by the novel covid-19 crisis that has shaken the world and will need a support package of up to $2.5 trillion to cope with the damage, a United Nations report has predicted.
According to a report by the UN Conference on Trade and Development (UNCTAD), which was released on Monday. Pakistan, Argentina and the Sub-Saharan African countries would face a “frightening combination” crises including mounting debts. A potential deflationary spiral as well as a disastrous impact on the health sector.
Their economies will take “enormous hit” from high capital outflows, lost export earnings due to falling commodity prices and currency depreciations, with an overall impact likely worse than the 2008 crisis, the report said.
“It’s going to be really bad,” said Richard Kozul-Wright, director of globalisation, and development strategies at UNCTAD who oversaw the report.