• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, March 21, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Global services trade recovering but below pre-pandemic levels

September 24, 2021
Stephen KotochiebyStephen Kotochie
in Around the Globe
0
Global services trade recovering but below pre-pandemic levels– WTO

A cargo ship

The recovery in global services trade looks set to extend into the third quarter of 2021. However, expansion could proceed along a lower trajectory if the impact of the COVID-19 pandemic turns out to be long-lasting, the WTO’s Services Trade Barometer indicates.

The latest barometer index reading of 102.5 is above the global services trade activity index and above the baseline value of 100.  According to the WTO, this suggests that the volume of services trade in the second and third quarters, for which official statistics are not yet available, will continue to recover.

However, the fact that the indicator has recently turned downwards suggests that the expansion may proceed along a new, lower trajectory if the COVID-19 pandemic turns out to have a persistent impact on services trade.

RelatedPosts

Swiss Rival Bank, UBS Rescues Credit Suisse In a Government-Backed Deal

Russia Hints of Challenging US Nominee to Head World Bank

A Ghanaian Becomes the First African Woman to Be Elected as the Chair of UN Disability Committee

SERVICES 1

In the first quarter of 2021, world services trade was down 13.9 percent year-on-year, according to the global services activity index.  The index provides an approximate measure of the volume of world services trade, taking changes in exchange rates and inflation into account.

Lower-than expected recovery in services trade

The World Trade Organization (WTO) noted that services trade fell sharply in the early stages of the pandemic but, in contrast to goods trade, it has only staged a partial recovery since then.  The WTO believes the impact of the pandemic on services trade is more severe than observed during the 2008-09 financial crises.

“The recent performance of services trade differs from the financial crisis of 2008-09, when services trade was more resilient than goods trade. The difference is largely due to the fact that the pandemic continues to weigh on travel and tourism. Year-on-year growth of services trade should turn strongly positive in the second quarter, mostly due to a lower base in the previous year”.

WTO

This notwithstanding, most component indices are on or above trend, but the overall picture is mixed. The global services Purchasing Managers’ Index (102.7) and financial services index (100.2) are declining after peaking, but remain above trend. This suggests an easing of the pace of recovery in services, the WTO said.

Rebound in passenger air transport

On a more positive note, the index of information and communications technology services (100.0) has climbed back to trend. The index for passenger air transport (105.6) has rebounded recently but appears to be stabilizing below pre-pandemic levels.

shipping container types
A shipping container

Moreover, growth in the container shipping index (106.8) has eased although throughput has hit a record high. The recent surge in shipping costs, WTO said, appears to be more due to strong demand for traded goods than to supply constraints. Overall, Construction is the only component to have dipped below trend recently (97.4) based on available data.

Unlike its counterpart for goods, the WTO highlighted that fluctuations in the Services Trade Barometer tend to coincide with movements in actual trade flows rather than anticipating them. The Organization explained that readings of 100 indicate growth in line with medium-term trends. But, readings greater than 100 suggest above-trend growth while those below 100 indicate the opposite.

READ ALSO: Heat Turns Up On Genocide Deal as Parliament Resumes Debate

Tags: COVID-19Global services tradeServices Trade Barometertechnology servicestradeWTO

Related Posts

Swiss Rival Bank, UBS Rescues Credit Suisse In a Government-Backed Deal
Around the Globe

Swiss Rival Bank, UBS Rescues Credit Suisse In a Government-Backed Deal

March 20, 2023
Russia Hints of Challenging US Nominee to Head World Bank
Around the Globe

Russia Hints of Challenging US Nominee to Head World Bank

March 9, 2023
A Ghanaian Becomes the First African Woman to Be Elected as the Chair of UN Disability Committee
Around the Globe

A Ghanaian Becomes the First African Woman to Be Elected as the Chair of UN Disability Committee

March 9, 2023
India Set to Push for Green World Bank Reforms to Increase Lending Capacity of Middle and Low-Income Countries at G20
Around the Globe

India Set to Push for Green World Bank Reforms to Increase Lending Capacity of Middle and Low-Income Countries at G20

February 24, 2023
Policy priorities for the G20 As Group of Twenty Finance Ministers Gather in India
Around the Globe

Policy priorities for the G20 As Group of Twenty Finance Ministers Gather in India

February 23, 2023
The World Bank President Resigns
Around the Globe

World Bank President to Resign in June

February 16, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Warrant issued for Diego Bunuel, former Netflix executive accused of raping his wife

Next Post

Nationwide vaccination exercise resumes today- GHS

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
11th African Fiscal Forum: Reducing Fiscal Deficits Is Crucial To Debt Sustainability And  Macroeconomic Stability- IMF, ECIP
Economics

11th African Fiscal Forum: Reducing Fiscal Deficits Is Crucial To Debt Sustainability And Macroeconomic Stability- IMF, ECIP

by Priscilla Dziedzorm FiakpornuMarch 21, 2023
 China’s Peace Plan Could Be Basis To End The War- Putin
Europe

 China’s Peace Plan Could Be Basis To End The War- Putin

by Comfort AmpomaaMarch 21, 2023
African Countries Facing a Brutal Financing Squeeze– IMF Director, African Department
Economy

African Countries Facing a Brutal Financing Squeeze– IMF Director, African Department

by Stephen M.CMarch 21, 2023
“It’s The Ideal Time To Expand Fintech Into A Tool Used In Deepening Financial Inclusion- Maina
Innovation

“It’s The Ideal Time To Expand Fintech Into A Tool Used In Deepening Financial Inclusion- Maina

by Priscilla Dziedzorm FiakpornuMarch 21, 2023
GITAC Calls On Media Firms To Help Publicize, Promote The Tourism Sector To Save Ghana
General News

GITAC Calls On Media Firms To Help Publicize, Promote The Tourism Sector To Save Ghana

by Gifty BansahMarch 21, 2023
Western Togoland Separatist Group Members Jailed 5 Years Each
General News

Western Togoland Separatist Group Members Jailed 5 Years Each

by Angeller AshongMarch 21, 2023
11th African Fiscal Forum: Reducing Fiscal Deficits Is Crucial To Debt Sustainability And  Macroeconomic Stability- IMF, ECIP
 China’s Peace Plan Could Be Basis To End The War- Putin
African Countries Facing a Brutal Financing Squeeze– IMF Director, African Department
“It’s The Ideal Time To Expand Fintech Into A Tool Used In Deepening Financial Inclusion- Maina
GITAC Calls On Media Firms To Help Publicize, Promote The Tourism Sector To Save Ghana
Western Togoland Separatist Group Members Jailed 5 Years Each
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In