The World Trade Organization (WTO) is predicting a “very sharp” decline in global trade, with the coronavirus (Covid-19) pandemic expected to have an “enormous impact” on the economy and on jobs.
“Recent projections predict an economic downturn and job losses that are worse than those of the global financial crisis a dozen years ago,” WTO Director-General Roberto Azevêdo said in a video message. “In a few weeks, the WTO will release our regular trade forecast. Our economists are still crunching the numbers but they foresee a very sharp decline in trade.”
Azevêdo said transparency and information sharing will be a critical part of crisis response, as will the fiscal and monetary stimulus packages introduced by governments.
Most recently, India’s government announced an economic stimulus package worth 1.7 trillion rupees (US$22.5bn).
“No country is self-sufficient, no matter how powerful or advanced it may be. Trade allows for the efficient production and supply of basic goods and services, medical supplies and equipment, food and energy … Keeping trade and investment flowing will be critical to keep shelves plentiful and prices affordable,” he said.
“Once the medical crisis begins to recede, trade will allow countries to help each other grow, bringing faster and stronger economic recovery for all of us.”
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By GlobalDataThe WTO has set up a trade-related information page, which includes news and projections for trade in goods and services, members’ notifications of Covid-19 related trade measures, and updates on WTO activities.
G20 leaders recently held an extraordinary meeting via video conference to respond to the global pandemic and agreed on the need for collective action to boost the global economy.
In a statement, they committed to collective action and to continue to “conduct bold and large-scale fiscal support.” The G20 statement also said that it will “ask Finance Ministers and Central Bank Governors to coordinate on a regular basis to develop a G20 action plan in response to Covid-19 and work closely with international organisations to swiftly deliver the appropriate international financial assistance.”
