The United Nations Conference on Trade and Development (UNCTAD) has estimated that international trade will decline 27% in the second quarter. Secondly, it forecasts that international trade will drop by 20% this year. The biggest reason for the drop is the global pandemic.
This follows a 3% drop in the first quarter of 2020. The UNCTAD advised that the downturn in the second quarter would accelerate. According to the report, the decline in international trade is accompanied by marked decreases in commodity prices. They have fallen precipitously since December.
Trade Prices and the Pandemic
The UNCTAD report acknowledges that plummeting fuel prices were the main driver of the steep decline. As a matter of fact, fuel prices fell 33.2% in March. This was, in part, due to the Sau…