In its latest “Services Trade Barometer”, published on 11 March, the World Trade Organisation (WTO) notes a slowdown in trade in services, particularly in the transport sectors.
A rough measure of the volume of world trade in services shows that the annual global growth of trade in services has already fallen. From 4.7% in the first quarter of 2019, it had already fallen to 2.8% in the third quarter and continued to slow in the first quarter of 2020, the WTO notes.
The most significant declines were in the transportation sector, which includes passenger air transport and container transport. The indices for global financial transactions and information technology (ICT) services are also growing below trend.
Finally, the lower level of the Purchasing Managers’ Index for Global Services, the most forward-looking component of the barometer, suggests that COVID-19 is expected to continue to weigh on trade in services in the short term.
In conclusion, the indicator does not yet fully capture the economic impact of the COVID-19 virus and is expected to show further declines in the coming months, notes the WTO.
Read the Services Trade Barometer: https://bit.ly/2ICfy9V (Original version in French by Hermine Donceel)