According to the latest report released by the World Trade Organization (WTO) on Wednesday, its commodity trade index has fallen to its weakest level on record due to trade disruptions caused by the Coronavirus pandemic.
The trade volume index, which began in July 2016, fell to 87.6 from 95.5 in February, below the 100-point baseline.
WTO has warned that its commodity index is "flashing red", which means a decline in trade volume, adding in its statement that "there is no indication that the trade deterioration has reached the bottom yet".
Depending on how long the pandemic lasts and how effective governments are controlling the spread of the virus and its economic impact, today's figures are in line with the World Trade Organization's forecast for April that global merchandise trade could drop between 13% and 32% this year.
The automotive production sector has experienced a major collapse since the start of the Covid-19 crisis, which is evident in the auto product index of 79.7, weaker than all other indicators, while the forward-looking export orders index registered 83.3 shows continued short-term weakness in trade.
In contrast, electronic component indicators 94.0 and agricultural raw materials 95.7 show signs of stability, although they are also still below trend.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, slumped 0.04 percent at 99.32, while the lowest level recorded during
the session was at 99.23.