World trade fall to be less severe than expected: WTO

ISTANBUL

The World Trade Organization (WTO) on Tuesday revised its forecast for decline in global world merchandise trade volume this year from 12.9% to 9.2%.

The positive outlook comes on the back of strong trade performance in June and July, when measures against the coronavirus pandemic were eased, the WTO said in a press release.

Trade of pandemic-related goods was especially strong in this period, the organization said.

“Conversely, the forecast for next year is more pessimistic than the previous estimate of 21.3% growth, leaving merchandise trade well below its pre-pandemic trend in 2021,” read the statement.

Meanwhile, WTO economists warned that the improved outlook could be disrupted by the ongoing effects of the pandemic.

The COVID-19 pandemic, which originated in China last December and has claimed over a million lives worldwide, has caused dramatic falls in several sectors, particularly tourism, travel, and manufacturing.