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WTO dampens hope of trade recovery

Although global trade is starting to crawl back after collapsing to a record low in June, the outlook remains too murky to conclude whether a sharp rebound will happening or the recovery will muddle along for months, the World Trade Organisation (WTO) has said. “Projections for a strong, Vshaped trade rebound in 2021 may prove overly optimistic,” the WTO said in a report yesterday. “As uncertainty remains elevated, in terms of economic and trade policy as well as how the medical crisis will evolve, an L-shaped recovery is a real prospect,” the report added. The WTO’s Goods Trade Barometer fell to 84.5 in June, compared with a level of 87.6 in May and 95.5 in February. Readings of 100 indicate growth over the next quarter in line with medium-term trends.

 

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