According to the World Trade Organization (WTO), trade activity will likely remain weak in the coming months due to disruptions caused by the coronavirus in China. The organization says the international movement of goods has been limited and trade has already slowed due to tariffs and uncertainty.
The latest Barometer on Trade in Goods from the Geneva-based body stood at 95,5, compared with a level of 96,6 in November. Readings of 100 indicate growth over the next quarter in line with medium-term trends, while readings above or below 100 point to growth above or below the recent trend.
“The slow start could be further hampered by global health threats and other recent developments in the first months of the year, which are not yet accounted for in the best available historical data for the barometer,” the WTO report said.
The volume of world merchandise trade decreased by 0,2% in the third quarter of 2019 compared to the previous year, according to the organization.
“The latest barometer reading does not indicate a sustained recovery,” he said. “In fact, year-on-year trade growth could fall again in the first quarter of 2020, although official statistics to confirm this will only be available in June.”
The decline in recent months was linked to a decline in container shipments, agricultural products and a stagnation in the automotive products index., the WTO said. Readings for export orders, air freight and electronic components, while below the reference line, “appear to have stabilised and are generally expected to increase in the coming months”.
“However, each component of the Goods Trade Barometer will be influenced by The economic impact of COVID-19 (coronavirus) and the effectiveness of efforts to treat and contain the disease,” the organization said.
World merchandise trade growth is likely to remain weak in early 2020 and could be dampened further by #Covid-19. More from the latest WTO Goods Trade Barometer: https://t.co/45uSlGWx3t #WTOStats pic.twitter.com/Sw7SlXMfaZ
— WTO (@wto) February 17, 2020
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
