Due to the Covid-19 pandemic, the World Trade Organization (WTO) said global merchandise trade fell by a record amount in the first months of the year. Global trade in goods would fall by between 13 to 32 percent in 2020, April’s estimate said, before rebounding by 21-24 percent next year. The Geneva-based body described this as "ugly".
The WTO said the governments’ rapid responses meant its pessimistic scenario for this year was unlikely. In fact, the volume of merchandise trade decreased by 3 percent in Q1. Initial estimates for April-June period pointed to a year-on-year decline of 18.5 percent.
The Organization said governments had reacted faster than in the crisis in 2009. Income support from the government had encouraged consumers to keep spending. Others sectors such as electronics had held up well, even though some others such as automobiles had fallen sharply.
