According to “Trade and Development Report 2020 – From Global Pandemic to Prosperity for All: Avoiding Another Lost Decade” released by the United Nations Conference on Trade and Development (UNCTAD) Global Trade is expected to fall by 7-9% in 2020 due to the Pandemic.
i.According to the report, Global Trade has recorded little growth in the Third Quarter less than the estimated 4.5 per cent in the same period in 2019.
ii.No region has been spared by an estimated 19% year-on-year plunge in World Trade in the Second Quarter of 2020 due to the Pandemic.
iii.Trades in Home Office Equipments, medical supplies and Textile Sector have increased, whereas Trade in Automotive and Energy sectors have weakened.
iv.The report has put a preliminary forecast has put year-on-year growth for Quarter 4 of 2020 at less than 3%.
v.In October, 2020 the World Trade Organization (WTO) upgraded its forecast for trade in goods due to improvements in June, 2020. It predicted a drop of 9.2 per cent for 2020.
China’s Exports rebound Strongly:
i.China’s Exports have rebounded strongly in the Third Quarter and has posted year-on-year growth rates of nearly 10%.
ii.Contrary to major economies, Chinese demand for imported products recovered following a decline in Quarter 2 of 2020.
According to the report, India’s Economy will contract by 5.9% in 2020.
Recent Related News:
i.On June 11, 2020, According to the report ‘Global Trade Update 2020’ released by the UNCTAD, the value of international trade in goods fell by 5% in the first quarter (Q1) of 2020 and is expected to plunge further by 27% in the ongoing second quarter (Q2) due to the unprecedented effects of the coronavirus (COVID-19) pandemic.
About United Nations Conference on Trade and Development(UNCTAD):
Secretary-General– Mukhisa Kituyi of Kenya (7th Secretary-General)
HeadQuarters– Geneva, Switzerland