On April 8, 2020, World Trade Organisation (WTO) has released Annual Trade Statistics and Outlook Report has projected that the global trade is to fall by 13%-32% due to the COVID-19 pandemic, as it disrupts the normal economic activity and life around the world.
Major Highlights
i.A 2021 recovery is expected but it depends on the duration of the outbreak and the effectiveness of the policy responses.
ii.This decline will exceed the trade slump brought by the global financial crisis of 2008‑09.
iii.Nearly all regions will suffer double-digit declines in trade volumes in 2020, with exports from North America and Asia hit hardest.
iv.The developing economies will need assistance as the crisis has hit almost all sectors. Trade in sectors with complex value chains, especially in the electronics and automotive products will fall abruptly.
v.Service trade through transport and travel restrictions may be directly affected by coronavirus due to lockdown.
vi.Before the crisis, global trade was in a difficult position due to the slow economic growth & the rising trading tension between United States (US) & China, which was expected to continue for a large part of 2020.
vii.The Merchandise trade volume has already fallen by 0.1% in 2019, easing trade tensions and economic growth. World trade exports declined by 3% to USD 18.89 trillion in 2019.
viii.The value of commercial services exports rose 2% to USD 6.03 trillion in 2019. In 2019, 1.7% of global exports originated from India and 2.5% of imports came to the country.
ix.India’s exports have increased after 6 months before the coronavirus. Total exports for the first 11 months (FY 20) of FY 2019-20 were USD 292 billion, following a modest 2.91% growth in February & Imports fell in 9 of 11 months for FY20, which leads to a 7.3% drop at USD 436.03 billion over the period.
About WTO
Headquarters– Geneva, Switzerland,
Director General– Roberto Azevedo
