UNCTAD: World trade could reach US$ 28 trillion this year

International trade in goods and services could reach $28 trillion this year, up 11% from pre-Covid-19 pandemic levels. But the emergence of new variants affects the prospects for exports and imports for 2022. This is shown by a quarterly balance sheet by the United Nations Conference on Trade and Development (UNCTAD) coinciding with new restrictions imposed by a growing number of countries in reaction to the omicron variant and which will have an effect on demand.

In 2021, the value of global trade in goods and services is expected to increase by $5.2 trillion compared to 2020 and $2.8 trillion compared to 2019, representing increases of 23% and 11% respectively.

Goods trade is projected to hit a record $22 trillion this year. Services trade could reach $6 trillion, still slightly below pre-Covid-19 pandemic levels.

The positive trend in international exchanges is largely the result of a strong rebound in demand in the wake of the pandemic’s containments, economic stimulus packages, and a significant rise in commodity prices.

But several factors keep pressure on foreign trade, and prospects for 2022 remain uncertain. UNCTAD mentions economic slowdown, in China, for example; persistent disruptions in supply chains; the high price of maritime transport; the global semiconductor shortage; geopolitical factors; government policies that signal more protectionism; and also the debt burden in several countries, with risks of financial instability and more inflationary pressures.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/mundo/noticia/2021/11/30/comrcio-mundial-poder-atingir-us-28-trilhes-neste-ano-prev-unctad.ghtml

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