7-9% dip in 2020 global trade: UNCTAD
In its quarterly Global Trade Update on Wednesday, the United Nations Conference on Trade and Development (UNCTAD) states that global growth remained negative with a decline of about 4.5% on a year-on-year basis in the third quarter of 2020. In spite of signs of a rebound led by China, it anticipates a 7-9% on-year drop in the value of global trade in 2020. This bleak economic scenario is attributed to to a possible resurgence of Covid-19 infections in the coming months and the prospect of a deteriorating policy environment, with sudden increases in trade restrictive policies.
The study also noted that situation improved in the third quarter as in the second quarter when it shrank around 19% on-year. It also added that India’s exports declined 6.1% on-year for quarter ended September 30. “Trade in home office equipment and medical supplies has increased in Q3, while it further weakened in the automotive and energy sectors,” UNCTAD observed.