UN: Value of global trade set to fall by 7-9% in 2020 due to COVID-19 pandemic

Dhwani Mehta FXStreet

According to the latest report published by the United Nations Conference on Trade and Development (UNCTAD), global trade rebounded in the third quarter but the outlook remains uncertain amid COVID-19 pandemic-induced economic disruptions.

Key takeaways

“The value of global trade is set to fall by 7% to 9% in 2020 from the previous year, despite signs of a fragile rebound led by China in the third quarter.”

“Global trade recovered somewhat in the third quarter, when it was estimated at about 4.5% less than in the same period a year ago.”

“Trade in home office equipment and medical supplies has increased in Q3, while it further weakened in the automotive and energy sectors.”

“Its preliminary forecast put year-on-year growth for Q4 2020 at 3% less.”

"Overall, the level of Chinese exports for the first nine months of 2020 was comparable to that of 2019 over the same period."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD faces the next support around 1.1600

EUR/USD comes under pressure and retreats for the fourth day in a row on Tuesday, coming closer to the key 1.1600 neighbourhood amid a decent rebound in the US Dollar ahead of the largely expected 25 basis point rate cut by the Federal Reserve on Wednesday.

GBP/USD extends mean reversion as investors brace for Fed

GBP/USD eased back toward the midrange on Tuesday, shedding around one-fifth of one percent after facing an intraday technical rejection from the 1.3350 level. Price action has slumped back into the 1.3300 handle and is holding just north of the long-term 200-day Exponential Moving Average near 1.3250 as markets hunker down for the last Federal Reserve (Fed) interest rate decision of 2025.

Gold declines to near $4,200 as traders await hawkish cut from Fed

Gold price trades in negative territory near $4,210 during the early Asian session on Wednesday. The precious metal edges lower as traders expect the Federal Open Market Committee to take a hawkish approach to future easing of monetary policy at its upcoming policy meeting on Wednesday.