WTO Trade Barometer Hits Record High on Optimism

GENEVA, SWITZERLAND – After falling sharply during the global pandemic, world services trade appears to be in a recovery phase, according to the latest Services Trade Barometer from the World Trade Organization (WTO). The services trade barometer is designed to highlight turning points and changing patterns in world services trade. The latest index reading of 104.7 is the strongest on record (in a series going back to 2000) and well above the baseline value of 100 that denotes growth in line with recent trends. The new index reading is also significantly above the low point of 91.2 for the month of March 2020, at the peak of lockdown measures associated with the pandemic. The strength of the rebound suggests that growth in world services trade accelerated in the fourth quarter of 2020 after bottoming out in the second quarter and picking up only slightly in the third. The financial services index (119.9) had an especially strong showing, reflecting a rise in international financial transactions. Other sectors experiencing good growth include construction (106.3) and container shipping (104.3).
(SOURCE: All Ag News)