Trade in goods slows due to supply problems and lower demand: WTO

The world trade in goods is slowing after a strong rebound after the initial shock of the Covid-19 pandemicas disruptions in the production and supply chain and cooling demand for imports dampen growth, the World Trade Organization.

The WTO said its goods trade barometer fell to 99.5 points in November, close to the baseline of 100, after a record reading of 110.4 in August.

The Geneva-based trade body said supply problems, which include bottlenecks at ports stemming from strong import demand in the first half of the year and disruption of the production of goods they had contributed to the decline.

Demand for traded goods is also moderating, marked by falling export orders.

“Cooling import demand could help ease port congestion, but delays are unlikely to be eliminated as long as container flow remains at or near record levels,” the WTO said.

The WTO said the reading broadly coincides with its forecast for a 10.8% rebound in the volume of the merchandise trade this year, which will decline to a 4.7% increase in 2022.

The trade body said that all component indices in its barometer had declined, with the steepest drop in its auto products index. Only the air transport index was firmly above trend.

Electronic components, container shipping and raw materials were at or near the 100 mark, indicating growth in line with medium-term trends.

The WTO Goods Trade Indicator is a combination of data and is designed to measure world trade growth rather than provide a specific short-term forecast.



Reference-www.eleconomista.com.mx

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