The impact of COVID-19 on global Trade
The COVID-19 pandemic is causing the worst contraction in global trade in the post-war era and it has had negative impact on activities in the Half year 2020 than anticipated, the pandemic is likely to leave lasting scars on the global economy by threatening investor confidence and human capital. The sharp fall in activity in the first half of this year is expected to contribute to a contraction in global trade of about 13.4 percent in 2020. As the pandemic has spread, stringent border controls and production delays have weighed on trade. Measures to slow the outbreak have limited or delayed the supply of critical inputs.
Earlier this year, the outlook for Nigeria’s GDP was optimistic, the World Bank and IMF forecasted 2.10% and 2.30% growth respectively. However, recent events – the decline in oil prices and the COVID-19 pandemic – has led to a review of the economic outlook and a likelihood of a recession which means that the pandemic has led to a reduction in GDP growth by more than five percentage points.