World trade in medical goods grow 16.3 per cent: WTO
Picture used for illustrative purpose.
Exports of medical products, including medicines, medical equipment and PPE, rose by more than 16 per cent, underscoring how trade has been a lifeline for access to critical goods through the pandemic, after the initial disruptions.
‘’The share of medical goods in world merchandise trade grew from 5.3 per cent in 2019 to 6.6 per cent in 2020. Trade in medical goods increased significantly in 2020, with trade in personal protective products growing the most (+47.2 per cent). Medicine represented 52 per cent of world trade in medical goods in 2020,’’ noted the Review, which looks into the latest developments in world trade, with a detailed analysis of the most recent trends for trade in goods and services.
The WTO’s annual flagship publication presents recent trends in world trade and seeks to provide statistical insights on the trade impact of COVID-19.
Exports of computer services saw double-digit growth in many economies across various regions in 2020. Rapid growth was recorded in most economies, in marked contrast with declines in other services sectors. Demand for computer services was buoyant, reflecting the shift to remote work and the growth in digital platforms.
Computer services, the fastest growing services sector over the past 10 years, grew by 8 per cent in 2020, boosted by a shift towards remote working and increased digitalization.
US exports of computer software increased by 13 per cent in 2020, mostly destined for the EU (22 per cent), Canada (12.6 per cent), Japan (10.9 per cent), the UK (9.1 per cent) and Switzerland (6 per cent).
Trade in goods and services experienced a deep slump in 2020 due to the COVID-19 pandemic.
The COVID-19 pandemic led to merchandise trade declining by 8 per cent and trade in commercial services contracting by 21 per cent year-on-year in 2020.
The effect of COVID-19 on goods and services differed, with services more severely affected. Services declined by 30 per cent in the second quarter of 2020 compared with a fall of 23 per cent for goods in the same period. While lockdowns led to the cancellation of flights, holidays abroad, restaurant meals, and cultural/recreational activities, the demand for essential goods held up in all major economies.
As businesses adjusted to new working conditions and vaccines began to be rolled out in the last quarter of 2020, trade in goods saw a recovery of 1 per cent compared with its pre-pandemic level in Q4 of 2019.
World trade in goods and services amounted to $22 trillion in 2020, a 12 per cent decline compared with 2019.
China, the top exporter of merchandise trade in 2020, accounted for 13 per cent of the world’s total (up from 12 per cent in 2019), totalling $2,323 billion.
Trade in manufactured goods represented 71 per cent of world merchandise exports in 2020, with a value of $12.1 trillion. World exports of manufactured goods decreased by 5.2 per cent in 2020 while total merchandise exports declined by 7.7 per cent overall. Fuels and mining products declined by 23.9 per cent in 2020, due to a big drop in energy prices and a fall in demand. Exports of agricultural products increased by 0.9 per cent in 2020 as many countries depended on food exports during the COVID-19 crisis. Due to demand for protective personal equipment, world exports of textiles increased the most among manufactured goods in 2020, growing by 16.0 per cent.
Travel - including tourism and related services - plunged in 2020 as travel restrictions were imposed due to the pandemic. World travel exports dropped to $549 billion compared with $1,468 billion in 2019.
After three successive negative quarters, world exports of intermediate goods rose by 8.5 per cent year-on-year in Q4 of 2020, a sign of strong recovery in supply chains. Exports of food and beverage intermediate goods increased by 16.3 per cent in Q4 of 2020 as food supply chains remained resilient and continued to meet demand. Exports of transport equipment saw a slight recovery in Q4 of 2020, increasing by 0.5 per cent year-on-year. The automotive sector was severely affected by COVID-19, with a decline in sales and supply chain disruption.
WAM
