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World trade likely to shrink by up to 32% because of pandemic

World trade is likely to shrink by up to 32 per cent in 2020 due to the pandemic of the new coronavirus, the World Trade Organization (WTO) predicted today, as quoted by France Press and Reuters.
The WTO pointed to a wide range for this year's decline, from 13 per cent to 32 per cent, arguing that there continues to be a big question mark about the impact of the unprecedented health crisis on the economy, Reuters specified.

In 2021, global trade will intensify by 21 to 24 per cent, the WTO expects. The Geneva organisation added that the outcome would depend largely on the duration of the pandemic and the effectiveness of the policy in dealing with it.

Global commodity exchanges have already been hampered by tensions in trade relations between major economies and uncertainty around Brexit. It is now likely to suffer double-digit declines in almost all regions of the planet, the WTO adds.

This contraction threatens to be most pronounced in North America and Asia, whose exports could fall by over 40 per cent and 36 per cent respectively, according to the most pessimistic hypothesis of WTO economists, BTA adds.

Europe and North America are likely to also report declines above 30 per cent.

The immediate goal is to contain the pandemic and mitigate the economic damage from it to individuals, companies and countries, said WTO Director General Robertu Azevedu. He presented the WTO report and urged leadership politicians to start planning their actions for the post-pandemic period from now on.

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