Page 13 - Policy Economic Report - April 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 7: Monthly trade policy uncertainty index, Index numbers, April 2016 – March 2025

Source- UNCTAD

Many low-income countries face challenges in terms of worsening external conditions, heavy debt
burdens and weakening domestic growth. More than a half of low-income countries (35 out of 68) are
currently in debt distress or at high risk of debt distress. With borrowing costs still high, governments have
to increasingly divert resources from critical spending needs to cover debt-servicing costs.

South-South trade and regional integration offer opportunities
The growth of trade among developing countries (South-South trade), however act as a source of
opportunities, resilience, and a buffer against uncertainty. Already accounting for about one third of
global trade, South–South trade is expanding faster than other trade flows. Intra-regional trade,
particularly in East and South-East Asia, is helping drive this growth.

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