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Worrisome signs series: Global trade contracts biggest since 2008/09 crisis

Historically speaking, without recovery in trade there has hardly been any economic and social recovery. So far, since 2008/09 crisis, ultra-loose monetary policy from United States has achieved low unemployment, in US it has fallen by half from 10% during crisis. However, speaking as a whole it has so far been a recovery less jobs.

Latest report from, Bureau of Economic policy, Netherlands, really make us at FxWirePro more worried over global economy and its impact over asset prices, which have inflated thanks to central banks' policy.

According to World Trade monitor report,

  • In Dollar terms, global trade contracted by 13.8%, biggest since the crisis. World imports shrank -13.3% and exports shrank by -14.2%.
     
  • Import drop is marginally larger (14%) for advanced economies, compared to emerging markets (-12.4%) but export drops are larger in EM (15.6%) compared to DM (-12.9%).
     
  • Emerging economies in Africa, Latin America and Europe suffered large drop in exports, -41.4%, -20% and -29.4% respectively.
  • Imports have dropped sharply across globe. 10% in US, 20% in Japan, 17% in Euro area, 11% in emerging Asia and 25% in emerging Europe. If this trend persists, it could push down China's exports further, raising concerns over its balance of trade.
  • Market Data
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