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Summary
- World Trade Organization (WTO) has revised its growth forecast for global trade in 2021.
- The rollout of vaccines worldwide has infused optimism in the markets for economic revival.
- Last year when the pandemic hit the world, it is estimated that Canada's GDP shrank by 5.8 per cent.
Geneva-based World Trade Organization (WTO) has revised its growth forecast for global trade to 8 per cent in 2021, after it recorded a fall of 5.3 per cent last year due to the unprecedented COVID-19 crisis.
WTO Director-General Ngozi Okonjo-Iweala said that apart from stopping the disease, the rollout of vaccines has given the world a chance to bounce back and revive the economy. Ms Iweala further added that for a strong recovery, it would be essential to keep the international markets open.
The WTO estimates that trade growth would slow down to 4 per cent in 2022 and the effect of the pandemic will continue to affect global merchandise.
'vaccination Lag and New Virus Strains Could Pose Threat'
The WTO director-general has warned that the global trade growth remains vulnerable as coronavirus cases continue to surge and new virus strains are emerging. She said that the new waves of infection can affect the chances of an economic recovery.
Source: Pixabay
Ms Iweala said that the rapid development and rollout of vaccines has increased the chances of defeating the virus and boosting the world economy simultaneously. However, this opportunity could be wasted if there's a vaccination lag in countries and a large number of people don't get access to vaccines.
According to an AFP report, about 52 per cent of the vaccine doses have been jabbed in high-income countries, which is 16 per cent of the world’s population. On the other hand, only 0.1 per cent of vaccines have been administered in 29-lowest income countries, accounting for 9 per cent of the world's population.
Effect of Pandemic on Canada
Last year when the pandemic hit the world, it is estimated that Canada's GDP shrank by 5.8 per cent. The Ontario government has already introduced a lockdown and other provinces might face new restrictions, this may affect the prospects of several businesses that are already struggling to sustain themselves in the long run.
In 2019, the unemployment rate was 5.67 per cent; it exploded to around 14 per cent during the lockdown from March to May and later dropped to 9.75 per cent in November 2020, according to the data by Statistics Canada.
