The effects of the COVID-19 pandemic are widespread and affected countries worldwide either directly or indirectly. At the beginning of this evaluation, in December 2021, the pandemic was still ongoing and its challenges are far from being overcome, at both national and international level.
Due to the pandemic, the global economy contracted by 3.5% in 2020, and had only partly recovered by 2021 (World Bank, 2021). This economic recession is leading to an increase in poverty and inequality worldwide. Experts project that the pandemic will undermine positive development trends and achievements made in relation to the SDGs.
To counteract these negative effects, governments around the world launched extensive response programmes. Whereas industrial countries invested an average of 8% of their GDP in 2020 to reduce the economic effects of the COVID-19 pandemic, emerging and developing countries spent less than 4% and 2% respectively of their GDP in the same period (IMF, 2021).
In April 2020, the BMZ launched the CERP with a total volume of EUR 4.7 billion to finance measures to prevent, detect and mitigate the pandemic and its socio-economic consequences.