The international trade industry has been hit hard by the COVID-19 pandemic. In fact, the value of global merchandise trade fell by around 5.6% in 2020 compared to the previous year, while services trade dropped by 15.4%. This was the biggest decline in services trade since 1990 and even worse than the drop caused by the global financial crisis in 2009.
This is mainly because borders have remained closed, shipments have been delayed, and shipping costs have gone up. Thus, in order for the industry to successfully recover, major changes must happen fast. Fortunately, in recent weeks, there has been an increase in vaccine rollouts, allowing more people to get vaccinated. This blog analyzes why these developments are critical for a global trade recovery.
The Importance of a Vaccine Rollout
Several COVID-19 vaccines are currently being administered around the world, such as the Moderna vaccine, the Pfizer vaccine, the Oxford vaccine, and the Johnson & Johnson's Janssen vaccine. A mass vaccination program is underway in several nations, including the US, the UK, and India, striving to curb the spread of the virus. If successful, this will allow businesses to recover fully and even achieve their pre-COVID revenues.
The trade industry is no exception, and a significant decline in cases will mean the current border closures will become a thing of the past. Shipment delays will also go down while the demand for imports may likely pick up, providing a significant push to the industry.
Thus, it is evident that the COVID-19 vaccines are already playing a critical role in revitalizing the international trade industry. These vaccines could prove to be a life-saver for the industry and help drive up global export volumes once again. Traders around the world are currently hoping that the vaccination programs can be completed as soon as possible in order for them to fully regain their business from other parts of the globe.
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