MOSCOW (Pakistan Point News / Sputnik - 20th November, 2020) World merchandise trade significantly rebounded in the third quarter of 2020 after a dramatic plunge in the midst of the pandemic, but the growth is likely to slow down by the year-end on the back of the second wave and renewed lockdowns, the World Trade Organization (WTO) said on Friday.
"The Goods Trade Barometer's current reading of 100.7 marks a dramatic improvement from the 84.5 recorded last August, which reflected collapsing trade and output in the second quarter as lockdowns and travel restrictions were employed to fight the virus. The latest reading indicates a strong rebound in trade in the third quarter as lockdowns were eased, but growth is likely to slow in the fourth quarter as pent-up demand is exhausted and inventory restocking is completed," the WTO said.
According to the report, the surge in the barometer index was triggered by a rise in export orders (113.5) and agricultural raw materials (103.6).
"The indices for container shipping (102.0) and automotive products (94.6) also recovered substantially to near trend, while those for air freight (88.5) and electronic components (94.6) remained below trend," the international organization continued.
The report concludes that the prospect of sustained growth remains unclear, as the virus resurgence "could weigh on trade in the coming months."
