The World Trade Organization (WTO) issued a report stating that global trade is expected to decrease by up to 32% this year due to the disruption of economic activity caused by the COVID-19 pandemic.
Roberto Azevêdo, WTO director-general, stated that “This crisis is first and foremost a health crisis which has forced governments to take unprecedented measures to protect people’s lives. The unavoidable declines in trade and output will have painful consequences for households and businesses, on top of the human suffering caused by the disease itself.”
Specifically, the report predicts that almost all regions will experience double-digit declines in trade volumes, with reports from North America and Asia stating that they will be hit hard.
In addition, WTO predicts that the decline will range between 13% to 32%, will most likely be greater than the slump in trade during the global financial crisis of 2008.
Therefore, Azevêdo noted that the top priority is to bring the pandemic under control, but also urges policymakers to start planning for the aftermath of the pandemic.
Although the Organization expects a recovery in 2021, the recovery remains uncertain and the outcomes will depend on the duration of the outbreak and the effectiveness of the policy responses.
Azevêdo highlighted that
These numbers are ugly – there is no getting around that. But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects. We need to lay the foundations for a strong, sustained and socially inclusive recovery.
Learn more about the outlook by clicking herebelow
