United Nations, Dec 2 (Asia Free Press): United Nations Conference on Trade and Development (UNCTAD) Thursday forecasted an increase of 23% on 2020 Global trade levels taking this year’s trade to about $28-trillion, according to media reports.
The UN trade agency UNCTAD said that the trade outlook for the financial year 2022 is ‘very uncertain’. However, the services sector has remained below 2019 levels, reported APP.
The value of world imports and exports of goods hit $5.6 trillion in the third quarter of 2021, setting a new quarterly record, according to a report published by UNCTAD.
“The positive trend for international trade in 2021 is largely the result of the strong recovery in demand due to subsiding pandemic restrictions, economic stimulus packages, and increases in commodity prices,” it says.
Moreover, in the third quarter of 2021, trade flows continue to increase in the developing economies compared to the developed economies.
UNCTAD has valued the global goods trade in the third quarter of 2021 at $5.6 trillion, which the UN agency has termed as a new record.
Although UNCTAD has forecast slow growth for the trade in goods, it has also forecast ‘a more positive trend for services’.
According to UNCTAD global outlook, several economies, including those part of the European Union, are facing Covid-19 related disturbances, resulting in a decrease in consumer demand in 2022.
The UN agency considers the spike in fuel prices to be a cause for increasing shipping costs, thus leading to a shortage of supplies.
UNCTAD cautioned that this has contributed to backlogs across major supply chains that could continue into next year. If it continues, it could even “reshape trade flows across the world”, added UNCTAD.
“Since the onset of the COVID-19 pandemic, the semiconductor industry has been facing headwinds due to unanticipated surges in demand and persisting supply constraints…If persistent, this shortage could continue to negatively affect production and trade in many manufacturing sectors,” UNCTAD noted.
