Development and building trade capacity
Aid for Trade during the COVID-19 crisis and recovery
This chapter provides an overview of the evolution of Aid for Trade flows in a context marked by the COVID-19 pandemic. It reviews key trends affecting the trade and investment landscape and their repercussions on Aid for Trade flows. Finally it analyses the role of Aid for Trade in supporting an equitable global economic recovery
Executive summary
The 2022 Aid for Trade Monitoring and Evaluation (M&E) exercise takes place amidst crises of unprecedented magnitude significantly affecting trade and investment. The COVID-19 pandemic has caused severe human and economic losses slowing down and in some cases reversing hard won progress towards the Sustainable Development Goals (SDGs). Countries lacking the capacity to implement large monetary and fiscal stimuli were hit hard experiencing widening inequalities. While 2021 showed signs of a swift recovery in early 2022 Russia’s war against Ukraine created a major humanitarian crisis and derailed economic growth prospects. Spikes in the price of energy and food caused by the war combined with rapidly rising inflation are posing serious food security risks in low-income countries (LICs).
Statistical note
According to the WTO Task Force on Aid for Trade projects and programmes are part of aid for trade if these activities have been identified as trade related development priorities in the partner country’s national development strategies.