FX.co ★ Global economy may face new difficulties

It is too early to estimate the real damage caused by the coronavirus outbreak. However, some experts are sure that the world will face the main problems some time later. According to the forecasts provided by the United Nations, the global economy will be confronted with difficulties at the beginning of this year.

The UN Conference on Trade and Development (UNCTAD) said that the global trade would fall again. “For the first quarter of 2021, UNCTAD projects a 1.5% decline in trade in goods versus the previous quarter, and a 7% drop in trade in services”. The US, China, and the EU will suffer more than other countries. Together these three giants account for about 63% of global imports and 64% of global exports. They are the largest purchasers for most emerging markets. That is why the losses of the US, the EU, and China will have a significant impact on developing countries.

The report also reads that problems in the services sector have a dominant influence on the global economy. Besides, experts note that the services sector will hardly recover in the near future. At the same time, the global trade is gradually getting back on track. In general, disruptions in the world production and supply chains may prevent the global economy from a rapid revival.

UN economists suppose that tourism is the most damaged sphere. At the beginning of 2021, most countries introduced new restrictive measures. At the same time, in China and India, exports of services showed the smallest decline.