According to the Global Trade Update (May 2021) released by the United Nations Conference on Trade and Development (UNCTAD) – India, China, and South Africa performed ‘relatively better’ than other major economies in imports & exports during the 1st Quarter of 2021.
i.Compared to 2020 averages, India’s imports increased by 45%, and Exports increased to 26% in Q1 of 2021. Service Imports increased by 14%, Service Exports increased by 2%.
ii.At the Global level, Trade in goods and services increased by 10% year-over-year, an increase of about 3% compared to Q1 2019.
iii.The overall forecast for 2021 indicates an 16% growth in Global Trade – 19% for Goods and 8% for services.
iv.In Q2 of 2021, the value of Global Trade in goods and services is expected to reach USD 6.6 Trillion.
i.Economies of China & USA will be the main drivers of global growth during 2021.
ii.In Q1 2021, trade continued to recover not only in sectors related to COVID-19 (such as pharmaceuticals, communication and office equipment), but also others like Minerals and agrifood.
- Sectors like Energy & International trade of transport equipment were lagging in the recovery process.
- Trade growth remained to grow stronger for East Asia & Developed Countries.
- China’s exports showed strong increases compared to the 2020 average and also pre-pandemic levels.
- The Economic recovery in 2021 will be uneven.
iii.Due to the pandemic, Global economy shrank by 4.3% in 2020, which is two-and-a-half times more than the 2009 recession caused by the global financial crisis.
Recent Related News:
i.On March 18, 2021, UNCTAD released its Trade and Development Report 2020 in which it expected India’s GDP to have contracted 6.9% (-6.9%) in 2020 and grow 5% in 2021.
About United Nations Conference on Trade and Development (UNCTAD)
Acting Secretary-General – Isabelle Durant
Headquarters – Geneva, Switzerland