Despite the overwhelming dominance of services in the world economy, the manufacturing sector continues to punch above its weight. It remains a main driver of the productivity growth needed to spur technological change and innovation, essential for both job creation and well-being. This is especially true for developing countries, making industrialization a crucial part of efforts to achieve the Sustainable Development Goals (SDGs).

We should therefore be concerned about signs emerging in the world’s poorest countries. Data sets are scarce, but there is evidence to suggest that the COVID-19 pandemic has had a severe impact on small and medium-sized enterprises (SMEs) and on the informal sector in least developed countries (LDCs). Without swift action from governments and the international community to get key industrial sectors back on track, a protracted downturn may be on the cards, with knock-on effects on development and efforts to cut poverty.

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