According to Bloomberg News, there has been a “short-circuit” due to Russia and Ukraine’s ongoing war coupled with Covid-19 lockdowns in the global trade recovery, as stated by the World Trade Organization.
More on global trade halt
The goods trade barometer of the World Trade Organization is the first to be made available since the Ukraine invasion that started in the month of late February. It showed how the war gave rise to a steep increase in energy and food price. This, in turn, has caused disruptions in the flow of international commerce.
The periodic goods barometer of the World Trade Organization soared to 99 from the earlier reading of 98.7, as was announced in February, as per a report published on Monday. A level of 100 implies growth over the coming quarter, which is in line with the medium-term trends. The recent figures suggest that continuous development will be slow in the merchandise trade.
Bloomberg News states that statistics related to container shipping are below the trend. It can be attributed to backlogs occurring persistently in ports, the report by World Trade Organization revealed. In the meantime, the export orders related to electronic components, air freight, and cars are above the baseline values.
The World Trade Organization stated that the latest barometer is consistent with the April forecast of the trade body of a 3% surge in global merchandise volumes in 2022, which is down from the 4.7% growth predicted last year in October.
