Research note: Covid-19 support to businesses risks leaving behind companies in developing countries

Most governments in the world have announced, and are implementing, programmes to respond both to the health and economic consequences of Covid-19. However, the magnitude of responses to Covid-19 (including health responses and economic stimulus packages) by governments has varied considerably, from nothing to about half of GDP.[1]

A simple linear regression between the level of support and some possible explanatory factors – the forecast level of impact of Covid-19 on the economy, GDP per capita, and the level of government debt before the crisis – shows that not the severity of the anticipated economic impact Covid-19 but GDP per capita is the most important of these three factors (for more details see below).

New study launched to prepare for the EU Generalised Scheme of Preferences after 2023

Since 1971, the EU GSP scheme offers easier access to the EU market for goods exported from developing countries by eliminating or reducing import tariffs unilaterally. The current legal basis for the GSP, Council Regulation (EU) No 978/2012, will expire at the end of 2023. If no new GSP Regulation is enacted, only imports from least developed countries (LDCs) would continue to benefit from preferntial access under the "Everything But Arms" (EBA) arrangement.