WTO says coronavirus is already affecting global trade in services

According to the World Trade Organization’s “Barometer of Trade in Services” published on March 11, the spread of the coronavirus is weakening global trade in services.

According to the barometer, a score of 100 indicates growth in line with medium-term trends. A score above 100 suggests growth above the trend, while scores below 100 indicate a decline.

The latest published score is 96.8 points, lower than the 98.4 recorded in September, suggesting growth below the trend in world services trade.

The WTO notes that the indicator does not yet fully capture the economic impact of the virus ” and is likely to decline further in the coming months ”.

The barometer seeks to show changes in standards in the service sector which accounted for a quarter of global trade in 2018 at US $ 5.8 trillion.

The biggest declines among the components of the index were seen in air travel (93.5) and container transport (94.3). Growth in these sectors was already at moderate prior to the epidemic. The drop in the container freight component was influenced by lower shipment volumes in Asia.

Source: Valor Econômico

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