WTO forecasts continued contractions in trade
The Merchandise Trade Barometer stood at 87.6 points, one of the lowest marks since the first publication in 2016
According to the figures reflected in the indicator published this Wednesday by the World Trade Organization (WTO), the drop in merchandise trade continues to accentuate during the first quarter of 2020.
The Merchandise Trade Barometer, which measures the outlook for world trade each quarter, shows a contraction of 87.6 points, a figure that represents one of the lowest levels since the first publication in July 2016.
As stated in the analysis carried out by the WTO, the current index “is a symptom of the initial phases of the COVID-19 outbreak, and still does not show signs that trade has bottomed out” because a fall was predicted on April 8 of merchandise trade between 13% and 32% throughout the year 2020.
The six sub indexes with which the barometer is produced reflected a contraction, presenting figures of up to 79.7 points, due to the collapse of the production and sale of automobiles in the main economies.
Furthermore, during the analysis, readings well below 100 were detected; in the indicators of new exports (83.3), maritime cargo transport (88.5) and air cargo (88), and only a situation close to stability was perceived in the sub indexes for the exchange of electronic components (94) and agricultural products (95.7).
K.Villarroel
Source: bancaynegocios
