>>
Home / Knowledge / News / Textiles / Global merchandise trade continues robust recovery from pandemic: WTO

Global merchandise trade continues robust recovery from pandemic: WTO

19
Aug '21
Pic: Shutterstock
Pic: Shutterstock
Global merchandise trade is continuing its robust recovery from the shock of the COVID-19 pandemic, according to the World Trade Organisation’s (WTO) goods trade barometer, which hit a record high in its latest reading issued on August 18. The latest barometer reading of 110.4 is the highest on record since the indicator was first released in July 2016, and up more than 20 points year on year.

The barometer is a composite leading indicator providing real-time information on the trajectory of merchandise trade relative to recent trends ahead of conventional trade volume statistics.

The rise in the barometer reflects both the strength of current trade expansion and the depth of the pandemic-induced shock in 2020, WTO said in a press release.

It is notable that, while still well above trend, the index has started to rise at a decreasing rate, which could presage a peaking of upward momentum in trade.

All of the barometer's component indices were above trend in the latest month, illustrating the broad-based nature of the recovery. Indices for air freight (114.0), container shipping (110.8) and raw materials (104.7) in particular continued to rise, signalling faster than average trade growth.

The automotive products index (106.6) also rose despite the fact that car production and sales fell in July in some countries due to a shortage of semiconductors (the rise can be explained by smoothing of the underlying data). This shortage is also reflected in a small decline in the electronic components index (112.4).

The forward-looking new export orders index (109.3) has slowed more definitively, providing a further indication that the pace of recovery is likely to decelerate in the near term.

The rise in the air freight index reflects a rebound in air transport due to the easing pandemic-related travel restrictions in some (mainly developed) countries. The index could turn down again suddenly if the spread of COVID-19 variants forces the re-imposition of restrictions.

The latest barometer reading is broadly consistent with the WTO's most recent trade forecast of 31 March, which foresaw an 8% increase in the volume of world merchandise trade in 2021 following a 5.3 per cent drop in 2020.

Global goods trade has grown steadily since it registered a sharp decline in the second quarter of 2020 during the early days of the pandemic. The volume of merchandise trade was up 5.7 per cent year on year in the first quarter of 2021, the largest jump since the 5.8 per cent rise in third quarter of 2011.

The latest barometer reading suggests that goods trade will see an even larger year on year increase in the second quarter once trade volume data for that period are available.

The outlook for world trade continues to be overshadowed by downside risks, including regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries. COVID-19 continues to pose the greatest threat to the outlook for trade, as new waves of infection could easily undermine the recovery.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: cf.kizlarsoruyor.com

Apparel/Garments | On 6th Dec 2021

All Turkish goods to be labelled ‘Made in Turkiye’

All goods produced in Turkey, including clothing for exports, will be ...

Pic: Jaroslaw Baczewski | Dreamstime.com

Textiles | On 6th Dec 2021

Global cargo demand up by 9.4% in Oct 2021 over Oct 2019: IATA

Global demand was up by 9.4 per cent in October 2021 compared to the...

Pic: Phanthit Malisuwan | Dreamstime.com

Textiles | On 6th Dec 2021

NCTO offers key policy recommendations to support US industry

In a written testimony before the US House Ways and Means Trade...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

J Vargas,

J Vargas

With a vision to be the world's top tier textile manufacturer, Badjatex...

Daniele Uboldi,

Daniele Uboldi

EptaInks is the screen-printing division of Eptanova, a company that...

Shivendra Nigam,

Shivendra Nigam

Delhi-headquartered Cantabil Retail India Ltd was founded by Vijay Bansal...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Ingo Soller, TWE Group

Ingo Soller
TWE Group

The TWE Group is one of the leading global players in the nonwovens...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search