The World Trade Organization (WTO) stated that the weak growth of global trade may continue until the first quarter of this year, but boosted by the relaxation of epidemic prevention measures in mainland China, international trade activities are expected to pick up at an accelerated pace.

 

The report released by the WTO on the 1st stated that the goods trade index fell to 92.2 in December last year, lower than the 96.2 in November last year. The gauge, which is based on a benchmark of 100, assesses whether data releases for trade growth in the next quarter are in line with the medium-term trend.

 

Almost all sub-indicators of this indicator are below trend, such as export orders (97.4), air freight (87.8), electronic components (84.9), etc., while the only one above trend is automotive products (105.8), benefiting from Strong sales in US, Europe, Japan.

 

The WTO said quarter-on-quarter growth in trade volumes "will likely turn negative" in the fourth quarter of last year and may remain weak in the first quarter of this year. This is in line with the recent forecast that growth in global merchandise trade volumes has been revised down sharply to 1% in 2023. But the WTO also said that any slowdown is likely to be short-lived, as container throughput and new export orders at mainland Chinese ports have begun to pick up after a major easing of epidemic prevention restrictions. (Source: money.udn0302) ☺

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