WTO Trade Barometer Reflects Global Trade Contraction

GENEVA, SWITZERLAND – The World Trade Organization (WTO) says a sharp contraction in global trade could be on the way. Drawing from their latest Good Trade Barometer, which fell to its lowest level since launching four years ago, the volume of world merchandise trade is likely to fall further on the heels of the COVID-19 pandemic. Currently, all of the barometer’s component indices are currently well below trend, and the automotive products index is showing the most weakness. Economists at the WTO also point to weak demand for traded goods based upon the declines in the container shipping and air freight indices. On the other hand, electronic components and raw agricultural materials, while still below trend, are showing signs of stability.