World trade to grow by 8% in 2021: WTO

The global trade body said prospects for a quick recovery in world trade have improved as merchandise trade expanded more rapidly than expected in the second half of last year.

Geneva: The World Trade Organization (WTO) said on Wednesday that global trade is primed for a strong but uneven recovery after the Covid-19 pandemic shock, forecasting an increase in the volume of world merchandise trade of 8 per cent this year.

The global trade body said prospects for a quick recovery in world trade have improved as merchandise trade expanded more rapidly than expected in the second half of last year.

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“World merchandise trade volume is expected to increase by 8 per cent in 2021 after falling 5.3 per cent in 2020, a smaller decline than previously estimated,” the WTO said in a press release, Xinhua reported.

The WTO figures showed that China was the world’s top exporter last year, accounting for 14.7 per cent of world merchandise trade, and the second-largest importer behind the US with a share of 11.5 per cent.

“Trade growth should then slow to 4 per cent in 2022, and the effects of pandemic will continue to be felt as this pace of expansion would still leave trade below its pre-pandemic trend,” it noted.