International trade in goods is expected to decline significantly in the coming months due to the coronavirus pandemic, according to the first edition of UNCTAD’s new quarterly newsletter entitled Global Trade Update.
Trade in many developing countries is projected to take a nosedive in the second quarter of this year due to the unprecedented effects of the pandemic, the update shows.
COVID-19 has severely hit the economies of developing and developed countries alike. In April, developing countries in South Asia and the Middle East suffered the steepest decline in exports, while those in East Asia and the Pacific experienced the least reduction in exports, according to the latest figures.
At the sectoral level, the pandemic has negatively impacted most sectors. Trade in automotive and energy products is among the worst affected in this second quarter.
Despite the bruising times, international trade has supported countries’ efforts to fight the pandemic and mobilized much-needed medical supplies.