William Malcolm

WTO Goods Trade Indicator Hits Record High

Global trade in goods is recovering strongly from a deep shock caused by the covid-19 pandemic last year. The World Trade Organization (WTO) said today that its indicator, which monitors the development of global trade in goods, has risen to a record high.

The value of the indicator according to the WTO rose to 110.4 points. This is the highest figure since July 2016, when the indicator was first published. It increased by more than 20 points year on year.

“The increase in the indicator reflects the strength of the current trade expansion and the deep shock caused by the pandemic in 2020,” the WTO said on its website. However, she added that the outlook for world trade continues to be threatened by risks that could lead to a decline. The biggest threat is the new wave of covid-19 infection, which could easily jeopardize the recovery. There are also regional disparities in the recovery, the continuing weakness of trade in services, and delays in vaccination, especially in poor countries.

The latest figure confirms the WTO forecast from the end of March, which expects the volume of world trade in goods to increase by eight percent this year. Last year, on the other hand, it fell by 5.3 percent.

World trade in goods has been growing steadily since the sharp decline in the second quarter of 2020 caused by the pandemic. In the first quarter of this year, the volume of trade in goods increased by 5.7 percent, which was the highest increase since the third quarter of 2011. In the second quarter, it could show even higher growth.