Economics
WTO Tempers Hopes for a V-Shaped Rebound, Sees L-Shape Possible
- Partial uptick in Q3 trade but recovery still highly uncertain
- A V-shaped recovery in trade flows may be ‘overly optimistic’
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Global trade is starting to crawl back after collapsing to a record low in June, the World Trade Organization said, but the outlook remains too murky to conclude whether a sharp rebound will happen or the recovery will muddle along for months.
“Projections for a strong, V-shaped trade rebound in 2021 may prove overly optimistic,” the WTO said in a report Wednesday. “As uncertainty remains elevated, in terms of economic and trade policy as well as how the medical crisis will evolve, an L-shaped recovery is a real prospect.”