Global trade in goods has exceeded pre-pandemic levels

IfW, one of Germany's leading economic institutes, has announced its analysis of global goods trade.

In the analysis, which stated that the global goods trade is predicted to increase by 2.4 percent in January despite the increasing number of Covid-19 cases and the ongoing global supply bottlenecks, it was reported that the trade in question has now exceeded the pre-pandemic level.

"Right now, around 11 percent of all goods shipped worldwide are affected by traffic congestion, and about 11 percent fewer goods are transported in the Red Sea than usual," the analysis included.

In the global trade indicator, it is reported that China's exports in January (nominal, seasonally adjusted) decreased by 0.3 percent and imports by 2.8 percent, while in the USA, it is predicted that there will be a 3.6 percent increase in exports and a 1.6 percent decrease in imports.

In the statement, it was noted that exports are expected to increase by 1.2 percent in Germany and 0.6 percent in the EU in January.

Vincent Stamer, one of the lfW researchers, stated that Beijing's strict Covid-19 policy is a threat to the local economy and said, "There is a great risk that this will also affect Europe's trade through further delays in port operations."

Emphasizing that global trade is stronger than ever despite the Omicron wave of the pandemic, Stamer added, "For this reason, the ongoing supply bottlenecks are the result of the extremely rapid increase in demand, which supply cannot meet."