Clyde WTN

World Trade Statistics

The COVID-19 epidemic has caused the worst economic collapse in our generation. Output has dropped, and job losses are piling up. Supply and demand shocks have severely disrupted trade. As the health crisis subsides, policymakers will face a critical challenge: laying the groundwork for a strong, durable, and equitable economic recovery

While the continuing epidemic represents a major departure from almost all recent economic trends, patterns in global commerce continue to provide important insights into what the future may contain. Even before the epidemic, global merchandise trade fell by 0.1% in volume terms in 2019, dragged down by political tensions and protectionist measures. Merchandise trade dropped by 3% in value terms, which reflect commodity price changes. In comparison, merchandise trade volumes increased by 2.9% in 2018.

In 2019, global trade in commercial services rose by 2.1 percent, easing after an 8.4 percent gain in 2018. All service sectors were impacted, with transport service exports falling by 0.8% as merchandise commerce slowed and travel exports increasing by only 1%. The only industry that grew at a faster rate — 3.3% – was “other commercial services.”

World commerce remains concentrated among big traders, with the top 10 dealers in both merchandise trade and commercial services accounting for somewhat more than half of total global trade.

Among the least developed nations, merchandise trade decreased by 2%, while trade in commercial services grew by 10%, driven in part by diversification from commerce to the tourism industry – which has now been severely impacted by the epidemic.

The COVID-19 epidemic has highlighted the rising importance of the services sector, particularly distribution, in keeping commerce flowing. The crisis has also highlighted the significance of digital trade.

The primary reasons for the rise in e-commerce and digital trade have been improvements in bandwidth and technical innovation. These advancements enable critical services such as telemedicine to be provided. Furthermore, the services sector accounts for more than one-third of the value added in pharmaceutical supply chains. Supply chain disruptions caused by the COVID-19 issue have had a significant impact on the supply of medical supplies and other essential commodities.

The statistics in this study also show how shifting consumer preferences in recent years have affected global trade patterns, with consumers increasingly eager to minimise their usage and disposal of items that harm the environment, such as plastics. Demand for renewable energy products such as wind turbines, solar panels, and electric vehicles has also risen considerably in recent years.

Finally, the COVID-19 epidemic has exposed the shortcomings of existing trade measurement techniques. Some nations have difficulty to provide trade data on a consistent basis, and the mechanism used to classify traded products has been insufficient to assess the complete spectrum of commodities exchanged in order to address COVID-19. To prepare, international organisations will need to enhance their cooperation.