Unctad says Covid-19 to reduce international trade by 27% in second quarter

A study carried out by the United Nations Conference on Trade and Development, Unctad, pointed out that disruptions to the economic and social sectors by the pandemic have caused a dramatic decline in trade.  The value of international trade decreased by about 5% in the first quarter of 2020, but due to Covid-19, this reduction will reach 27% in the second quarter according to the body.

The most recent figures point to a deterioration in imports in April and May. In developing countries, trade appears to have fallen at a faster pace than in developed countries. During this period, imports in developing economies fell by 19%, while exports decreased by 18%.  With the exception of January and February, China appears to have done better than other major economies. Exports grew by 3% in April, although there was a fall of around 8% in imports and exports in May.

Non-automotive and energy trading companies collapsed, and trade in agrifood products remained stable. The purchase and sale of medical supplies for Covid-19 more than doubled in April.

Source: ONU News

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