COVID-19 IMPACT

IS THERE END OF GLOBALISATION?

Globalization hit a couple of road blocks in recent years after decades of growth in world trade,global tourism & international cooperation as the reemergence of nationalism & protectionism.

Global trade growth slowed remarkably in 2019 due to trade tension between United States & China and Covid-19 pandemic is expected to create unprecedented fall in world trade.

According to WTO world merchandise trade is set to fall between 13 & 32% in this year depending on how quickly is corona virus is contained & trade can return pre pandemic levels.

According to WTO Director General Mr Roberto Azevodo,”These numbers are ugly,there is no getting around that.But a rapid & vigorous rebound is possible”.

He is also emphasizing the role of free market on the road of recovery.He further said,”Keeping markets open & predictable as well as fostering more generally favourable business environment,will be critical to spur the renewed investment we will need.And if countries work together we will see a much faster recovery than if each country acts alone”.

The trade decline has started from Global Financial Cricis in 2009 & never returned to its previous growth trajectory & many expects similar long term effect of current Covid-19 Pandemic.

Many companies are vulnerable of global supply chains due to Covid-19 pandemic & trade tensions between United States & China.

It could lead to more domestic approach to production & sourcing which might result in a sustained reduction in global trade.

Published by Sima Sarkar

I am Anjan.I am a freelancer.I am trying to write day to day human issues.I want to highlight issues related to 'Mother Earth' as well.

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