Business

Covid-19 trade drop limited to 9.2% in 2020, WTO says

Geneva, Oct 6 (EFE), (Camera: Antonio Broto).- Global trade is showing signs of recovery amid the deep economic crisis caused by the Covid-19 pandemic and is expected to end the year with a fall of 9.2 percent instead of 12.9 percent estimated six months ago, according to the World Trade Organization.Trade volume is expected to grow by 7.2 percent in 2021, meaning that by the end of next year it will still not have returned to where it was before the outbreak, according to a WTO report released Tuesday.The organization predicted the global GDP will fall by 4.8 percent this year and increase next year by 4.9 percent.If the spread of the virus is controlled and the drop is limited to 9.2 percent as predicted, it will mean ending 2020 in the most positive scenario that was contemplated in April.The recovery expected in 2021 is only a third of the 21.3 percent calculated in April meaning the prevailing scenario for the near future is one of “weak recovery”.WTO deputy director-general Xiaozhun Yi warned that a resurgence in the virus that requires new restrictions could reduce global GDP growth by two to three percentage points and put a four percent dent in the growth in merchandise trade expected in 2021.International trade could be largely sustained thanks to demand for medical supplies, electronic devices and technological goods.FOOTAGE OF THE PRESS CONFERENCE ON TUESDAY.SOUNDBITES OF XIAOCHUN YI, WTO DIRECTOR-GENERAL; AND ROBERT KOOPMAN, WTO CHIEF ECONOMIST.