The COVID-19 pandemic poses a challenge for sustainable development prospects in least developed countries (LDCs), as containment and lockdown measures have resulted in an economic slowdown for the group as a whole and for African LDCs in particular. Show Source: UNCTAD secretariat calculations based on data from UNCTADstat database In 2001, the international community deemed a yearly growth rate of at least 7% necessary to eradicate poverty in LDCs and put their economies on a path of accelerated growth and sustainable development. The goal was introduced in the Brussels Programme of Action (BPoA) and then reaffirmed in 2011 in the Istanbul Programme of Action (IPoA) and enshrined in the 2030 Agenda for Sustainable Development, under target 8.1 of the Sustainable Development Goals (SDGs). Despite large differences in growth performance among individual countries in the group, the January edition of UNCTAD’s LDC Chart of the Month reveals the extent to which the 7% growth target was unreachable for most LDCs even before the pandemic. Insufficient and unsustained early progressUnfortunately, the progress made to enable LDCs to move towards graduation under IPoA was inadequate. Low productive capacities, limited economic diversification, dependence on natural resources and high trade costs remain among the major obstacles they face to achieving sustained economic growth and development. Each year during the BPoA period, from 2001 to 2010, an average of 15 out of 46 LDCs attained the target growth rate, while 10 on average suffered a contraction in real GDP per capita. The situation, however, started to deteriorate progressively under the IPoA. In the early 2010s, as commodity prices began to slide, so did the number of LDCs meeting the 7% growth target, even though several West African countries recorded high growth rates between 2011 and 2015. Inversely, the chart reveals a relative increase in the number of LDCs experiencing real declines in GDP per capita during the same period. The divergence became more pronounced after 2016. Goal pushed further out of reach by COVID-19COVID-19’s economic fallout – and the current uneven global recovery – has only pushed the goal further out of reach for most LDCs. UNCTAD analysis shows, for example, that it could take five or more years for one third of LDCs to recover to their already low pre-pandemic levels of GDP per capita – a proxy indicator for the average standard of living. In 2020, the median gross national income per capita for LDCs was $905, compared with $3,970 and $24,085 for other developed countries and developed countries, respectively. Four key messagesBeyond underscoring that the IPoA target remains largely unfinished business, the chart illustrates four key messages:
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View all charts What happens if a country has a low GDP?If GDP is falling, then the economy is shrinking - bad news for businesses and workers. If GDP falls for two quarters in a row, that is known as a recession, which can mean pay freezes and lost jobs.
What is the GDP of developed countries?Understanding a Developed Economy
Some economists consider $12,000 to $15,000 per capita GDP to be sufficient for developed status while others do not consider a country developed unless its per capita GDP is above $25,000 or $30,000.
Which developing country has the lowest GDP?In 2021, Burundi reported the lowest per-capita GDP ever, closely-followed by South Sudan and Somalia.
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The 20 countries with the lowest gross domestic product (GDP) per capita in 2021 (in U.S. dollars). Why GDP is higher in developing countries?A high volume of exports, plentiful natural resources, longer life expectancy, and higher investment rates have positive impacts on the growth of per capita gross domestic product in developing countries.
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