The World Trade Organization (WTO) announced that global merchandise trade volumes declined by 14.3% in the second quarter of 2020 compared to the previous period as COVID-19 containment measures affected economies around the world.

According to the WTO's latest data, the steepest declines were recorded in Europe (-21%) and North America (-20%) while Asia was relatively less affected (-7%).

The nominal dollar value of merchandise trade also plunged in the second quarter, falling by 21% year-on-year. In comparison, the decline in merchandise trade values during the financial crisis was deeper with a 33% drop recorded in the second quarter of 2009.

In terms of monthly performance, the dollar value of world merchandise trade fell 23% in April year-on-year and 26% in May before easing to a 10% contraction in June as countries in Europe started to relax lockdown measures while some Asian economies saw a modest rebound. In July, merchandise trade remained weakened at -9%. The monthly estimates are based on data from 72 economies accounting for 92% of global merchandise trade.

The decrease in world services trade was more pronounced, dropping by 29% year-on-year in both April and May, 24% in June and 22% in July, based on preliminary statistics of 38 economies representing more than two-thirds of global services trade. In July, services exports from North American economies were down 30% while in Asia, China's services exports stopped declining, reflecting the divergent trajectory of the pandemic across regions.

Source: WTO

 

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