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Developing Countries: Economic Situation

Volume 497: debated on Monday 12 October 2009

To ask the Secretary of State for International Development what recent assessment he has made of the effects of reductions in levels of global trade on the gross domestic product of (a) small vulnerable economies, (b) least developed countries and (c) small island states. (289859)

Since the onset of the global financial crisis, the Department for International Development (DFID) has been closely tracking its impact on developing countries. The crisis and the subsequent reductions in global trade have had a significant effect on developing countries and a reduction in projected growth rates is predicted across the board. Our initial assessments have indicated that commodity-exporting countries with non-diversified economies have seen the greatest impact.

A dedicated team has been set up to co-ordinate and initiate work across the Department to assess trade-related and other impacts of the global slowdown on low-income countries. More broadly DFID is in close contact with colleagues across Whitehall and overseas, in other Governments, the international financial institutions, and research institutions to analyse impacts of the crisis and plan further effective responses. DFID has commissioned several pieces of research examining trade-related impacts which have been made publicly available:

“The implication of the global financial crisis for developing countries’ export volumes and values” global-financial-crisis-developing-countries-export-volumes-trade

“Individual Country Reports of 10 selected Low Income Countries” global-financial-crisis-developing-countries

“Assessing the Impact of the Global Financial Crisis on World Prices and Trade in Developing Countries”

“Are Exporters in Africa Facing Reduced Availability of Trade Finance?”