World Trade to Slip by 11%; More Trouble for Exporters :(

World trade down

The International trade in 2009 is estimated to decline by 11 per cent in real terms and by more than 20 per cent in current dollars (terms), United Nations Conference on Trade and Development (UNCTAD) report said on Monday.


This seems to a bad news for the Indian exporters due to the worsening of the global merchandise outlook.


There was a fall in demand from major developed countries like US and European Union due to the global recession.


The exports of India stood in the negative zone for the tenth month in a row since October 2008.


The exports during April-July period of this year, dropped by over 31 per cent.

However, earlier, the World Trade Organisation had estimated the global trade to be slipping by nine per cent in 2009.


World trade slowed down in 2007 and has been shrinking at a fast pace since November 2008, in both volume as well as value terms.

The trade volume decelerated first in the United States and other developed countries, the report said.


On the top of this, the report also stated that as the crisis is global, the reliance on exports offers no easy way out, since trade is expected to fell by about 11 per cent in real terms and any expansion of new trade requires a recovery of consumption and investment somewhere in the world.


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