The volume of world trade in goods presented a fall of 14.3% in the second quarter of 2020 compared to the same period of the previous year, since the containment measures of Covid-19 affected economies around the world, the World Trade Organization (WTO) reported.
This latest contraction in world trade in volume is more pronounced than the 10.2% reduction recorded during the financial crisis between the third quarter of 2008 and the first quarter of 2009.
According to the most recent data, the steepest declines were recorded in Europe (-21%) and North America (-20%), while Asia was relatively less affected (-7%).
Meanwhile, trade in products fell by 21% in the second quarter of 2020.
By comparison, the drop in the value of global goods exchanges during the financial crisis was deeper, registering a 33% drop in the second quarter of 2009.
In terms of monthly performance, the dollar value of world merchandise trade fell 23% in April year-on-year and 26% in May before declining to a 10% contraction in June as European countries began to relax blocking measures while Some Asian economies saw a modest rebound.
In July, merchandise trade continued to weaken, down 9%. Monthly estimates are based on data from 72 economies representing 92% of world merchandise trade.
The decline in world trade in services was more pronounced, falling 29% year-on-year in both April and May, 24% in June and 22% in July, according to preliminary statistics from 38 economies that account for more than two-thirds of world trade in services.
In July, service exports from North American economies fell 30%, while in Asia, China’s service exports stopped declining, reflecting the divergent trajectory of the pandemic across all regions.