Trade in Many Developing Countries Projected to ‘Nosedive’, Warns UNCTAD

By Michelle Nurse Last updated Jun 17, 2020

Many container ports, like this one in New York City, have seen a decline in activity as a result of the coronavirus pandemic (Photo via UN News/Daniel Dickinson)

…trade data shows that in April, the steepest decline in exports was in poorer countries in South Asia and the Middle East.
UNCTAD

(United Nations News) Trade in many developing countries is expected to take a “nosedive” in the second quarter of 2020, owing to the unprecedented effects of the coronavirus pandemic, UN economists said on Tuesday.

In a new report from UN trade and development body, UNCTAD, it highlighted data showing that the value of international trade in goods has declined by about five per cent between January and March.

Worse than 2008 crisis

To put it into perspective, this is even worse than the near 25 per cent contraction in world trade in the aftermath of the 2008-9 financial crisis, from which the global economy has yet to recover fully.

COVID-19 has severely hit markets in developing and developed countries alike, continuing the bad run observed in the first quarter, UNCTAD said.