WTO’s trade index hits record low

The World Trade Organisation (WTO) said Wednesday that its goods trade indicator fell to the lowest level since its launch, indicating global trade was likely to fall “precipitously” in the first half of 2020 due to disruptions caused by Covid-19.

Report informs citing the India Today the indicator, launched in July 2016, fell to 87.6 from 95.5 in February, the Geneva-based body said. Readings of less than 100 indicate trade below medium-term trends.

“The current reading captures the initial phases of the Covid-19 outbreak, and shows no sign of the trade decline bottoming out yet,” the WTO said in a statement.

Even before the pandemic, trends had been slowing due to a trade war between major economies like China and the United States and slowing economic growth.

The WTO estimated last month that world merchandise trade could decline between 13% and 32% this year, depending on the duration of the pandemic and the effectiveness of policy responses. The new reading was consistent with that estimate, the statement added.