International trade

The vigorous recovery in world trade in the immediate aftermath of the Great Recession has quickly lost its momentum. Growth of world trade, as measured in the volume of world imports and exports, moderated sharply for the second year in a row, dropping from 12.6 per cent in 2010 to 6.4 per cent in 2011 and 3.2 per cent in 2012 (figure II.1). The deceleration of world trade has been closely associated with the weakening of global demand, resulting mainly from stalling economic activity in Europe and anaemic aggregate demand in the United States of America and Japan. Developing countries and the economies in transition are increasingly feeling the effects of the slowdown through integrated global networks of production and trade. As a result, global output and trade have slowed in tandem.

Related Subject(s): Economic and Social Development