The World Trade Organization anticipates Global Economy to fall on COVID-19 | Financial Buzz

The World Trade Organization anticipates Global Economy to fall on COVID-19

The World Trade Organization has predicted that World Trade will fall between 13-32% as the coronavirus pandemic disrupts normal economic activity and life around the world.  The WTO expects 2021 to recover depending on the duration of the outbreak and the effectiveness of policy responses. 

“This crisis is first and foremost a health crisis which has forced governments to take unprecedented measures to protect people’s lives,” WTO Director-General Roberto Azevêdo said.

“The unavoidable declines in trade and output will have painful consequences for households and businesses, on top of the human suffering caused by the disease itself.”

“The immediate goal is to bring the pandemic under control and mitigate the economic damage to people, companies and countries. But policymakers must start planning for the aftermath of the pandemic,” he said.

“These numbers are ugly – there is no getting around that. But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects. We need to lay the foundations for a strong, sustained and socially inclusive recovery. Trade will be an important ingredient here, along with fiscal and monetary policy. Keeping markets open and predictable, as well as fostering a more generally favourable business environment, will be critical to spur the renewed investment we will need. And if countries work together, we will see a much faster recovery than if each country acts alone.”

Almost all regions will suffer double digit declines in trade volumes this year as exports within North America and Asia will be affected the most.