The extent of countries’ dependence on commodity exports as a key factor in determining their economic well-being has increased over the last decade from 93 countries in 2008-2009 to 101 in 2018-2019, according to United Nations Conference on Trade and Development’s (UNCTAD) State of Commodity Dependence 2021 report released just over a week ago.
The report puts the nominal value of global commodity exports at US$4.38 trillion in 2018-2019, a 20% increase compared with 2008–2009, the report shows. The findings of the report are less than upbeat news for commodity-dependent developing countries which, according to UNCTAD‘s Head of Commodities Janvier Nkurunziza “makes countries more vulnerable to negative economic shocks,… and can have a negative impact on export and fiscal revenues and adversely affect a country’s economic development.”