Trading activity is what we know is a process of moving goods, resources, or money across country borders. As a country does not have the sole capacity to produce all commodities in its country and can neither consume everything, so has to participate in the trading activity. From this trading activity, the global trade data is obtained that defines the global trade aids with which the countries are involved.
According to the forecasts from the World Trade Organization, the pace of trade in commodities is expected to grow by 8 percent in the year 2021. As in the year 2020, a significant disagreement could be seen in global trade due to the pandemic situation of COIVD-19 so the international trade data has shown a drop in merchandise volume by roughly 0.1 percent in 2019. This article thus focuses on exhibiting the key statistics and trends of the international trade data of 2020 that was affected by the pandemic situation.
Overview of Global trade data
Foreign trade data or Global Trade Data is a database that keeps information of exporter names, importer names, description of goods, HS Code, quantity, shipment date, etc. As this trade data covers all the shipment history of different countries involved in international trade, so it is known as world trade data or international trade data. Through this global trade data, a businessman or trader can easily track down the information about the export and import of goods that are being made between countries. Not only that they can even find out the price and quantity of the product involved in the trading activity with international countries from this global trade data. This trade data also helps in tracking down the shipment records of its opponents.
From this global trade data, one can find information regarding import and export trade data in different countries around the world. Through these trade data, one can easily find the most prominent and easily available details of suppliers, buyers, import-export banks of different countries. All the trade data of different countries are collected, managed, and disseminated from different statistics, international trade trends, custom data, and trade agreements to prepare the international trade data.
Global trade data affected by COVID-19
The global economy recently has been severely affected by the pandemic of COVID-19 of 2020. From the global trade data, it could be estimated that in 2020 the global economy could be predicted to shrink by an astounding 5 percent rate. The international trade data showed that the value of foreign commerce is anticipated to decrease by 8 percent. Thus, it could be assumed that as the epidemic has been kept under control, the international trade and global economy are expected to return to their previous form.
From the international trade data, it could be exhibited that this pandemic situation had a significant and immediate influence on international trade. From the statistics of trade data it could be seen that from the month of January, the first symptoms of trade slowdown were visible, where major economies were showing negative developments. Nonetheless, the global trade data showed the most declining condition in the international commerce that came in the second quarter of the year 2020, where the global merchandise had a fall by 20 percent as compared to the same quarter in the previous year (2019).
As per the international trade data, international commerce may be divided into two main categories: commodities (merchandise) and services. The trade data states that the majority of the international trade data is comprised of physical commodities, with services accounting for a significantly smaller portion. Over the last decade, the global trade data had recorded significant growth in global trading of goods from over USD 10 trillion in 2005 to more than USD 18.5 trillion in 2014. But then the trade data has seen a sudden downfall in 2016 and then by reaching USD 18.8 trillion in the year 2019. Thus it could be stated from the trade data that the service trade from the year 2005 to 2019 had expanded dramatically from around USD 2.5 trillion to close to USD 6 trillion.
Change in Import & Export trends
The following are the changes in the import-export trends in the year 2020 as a result of the pandemic situation:
- East Asia had a fall in exports by -8% and -1% in imports in the first quarter of 2020.
- Transition Economies had a -13% drop in exports and -3% in imports.
- Latin America had a -4% drop in exports and -6% in imports.
- West Asia & North Africa had a fall of -9% in exports and -2% in imports.
- South Asia had to face a -16% fall in exports and -10% in imports.
The statistics for the second quarter were like:
- East Asia (-6% in exports, 12% in imports)
- Transition Economies (-29% in exports, -20% in imports)
- Latin America (-27% in exports, -31% in imports)
- West Asia & North Africa (-42% in exports, -25% in imports)
- South Asia (-40% in exports, -48% in imports)
Lastly, the national statistics of the third quarter for the same year of these countries were like:
- East Asia (4% in exports, -4% in imports)
- Transition Economies (-27% in exports, -16% in imports)
- Latin America (-9% in exports, -25% in imports)
- West Asia & North Africa (-25% in exports, -15% in imports)
- South Asia (-12% in exports, -24% in imports)
From the global trade data patterns for 2020, some variations across the nations could be found. Except for a few nations, the international trade data reflected a drop in import & export trade data in a varied form. For instance, many East Asian countries have performed much better than the rest of the world. On the other hand, the African trade data patterns of the year 2020 revealed a diversified picture.
The international trade data value in much of Southern Africa had shown a decrease, whereas trade data of the West African area had grown. A significant difference could be seen in the East Asian and Pacific areas where the country had to face double-digit losses in trade in the first nine months of 2020.