World trade will decrease to 32% in 2020 – BeInCrypto

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According to the latest report by the World Trade Organization (WTO), global trade is expected to fall between 13% and 32% in 2020.

The corona virus pandemic has uprooted world trade and depressed demand. According to the World Trade Organization, a significant decline in world trade can be expected.

Trade war

World trade is expected to decrease

With the decline in global demand due to the corona virus pandemic, the World Trade Organization is lowering expectations of world trade. According to the latest report, “World trade is expected to fall between 13% and 32% in 2020.”

According to the report, the immediate goal is to control the pandemic. “However, these numbers are ugly – there is no way around them,” the report says.

The report also underlines that the current economic crisis is not comparable to the Great Recession of 2008. During the past recession, governments intervened in monetary and fiscal policies to address the economic crisis. This time, however, restrictions on transportation, work, and travel affect the global economy in very different ways. It is therefore difficult to predict how the global economy will develop in 2021 or 2022.

A deflationary shock?

Analysts have argued that the global economy could experience a deflationary shock due to depressed demand. Due to mass layoffs, ordinary people simply don’t have the purchasing power they once had, which will depress income and ultimately prices.

The endless printing of Federal Reserve funds has caused many in the crypto space to argue that we could see a hyperinflationary crisis, but this doesn’t seem to be in the short-term forecast. However, there is evidence that credit is running low as companies borrow in record numbers. Although the Federal Reserve prints about $ 60 million in new currency every minute, immediate fears are now deflationary, although this could temporarily change the situation for a subsequent inflation crisis.

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As a leading blockchain and fintech news company, BeInCrypto always strives to comply with strict editorial guidelines and the highest journalistic standards. With this in mind, we always encourage and encourage readers to do their own research into the information contained in this article. This article is intended as news and is for informational purposes only. The topic of the article and the information provided may have an impact on the value of a digital or cryptocurrency asset, but is never intended. Likewise, the content of the article and the information contained therein do not intend to present sufficient information to make a financial or investment decision. This article is not expressly intended as financial advice, it is not financial advice and should not be construed as financial advice. The content and information in this article have not been prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making an investment decision. The author of this article may have any amount of Bitcoin, cryptocurrencies, other digital currencies, or financial instruments at the time of writing, including but not limited to those contained in the content of this article.



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