WTO says trade in goods slows due to supply problems and lower demand

Global trade in goods is slowing after a sharp rebound after the initial impact of the COVID-19 pandemic, as disruptions in the production and supply chain and cooling demand for imports dampened growth, the company said. World Trade Organization (WTO).

The OMC said its goods trade barometer fell to 99.5 points in November, close to the baseline of 100, after a record reading of 110.4 in August.

The trade body, which is based in Geneva, said that supply problems, including bottlenecks at ports stemming from strong import demand in the first half of the year and the interruption of the production of goods had contributed. to decline.

Demand for traded goods is also moderating, marked by falling export orders.

“Cooling import demand could help ease port congestion, but delays are unlikely to be eliminated as long as container flow remains at or near record levels“Said the OMC.

The OMC He added that the reading broadly coincides with his forecast for a 10.8% rebound in merchandise trade volume this year, which will slow to a 4.7% rise in 2022.

The trade body said all component indices in its barometer had declined, with the steepest drop in its auto products index. Only the air transport index was firmly above trend.

Electronic components, container shipping and raw materials were at or near the 100 mark, indicating growth in line with medium-term trends.

The indicator of trade in goods of the OMC it is a combination of data and is designed to measure world trade growth rather than provide a specific short-term forecast.